Why Depreciation Is Considered A Non Cash Expense When Estimating A Project's Net Cash Flow?

Because the equipment or tools or any thing that was used in the business started with cash, like the money that was used to buy those materials for the business use is from the capital of the business. As the years goes buy, these equipment or materials are getting older but still being used in the business. So therefore they will not be left out because of the age in the inventory but they can only be included as depreciated or a non cash expenses.

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