Because capital expenditures can sometimes result in meaningful tax savings – i.e. tax depreciation and Sec. 179 expense elections, The tax savings provides a complete picture of the possible decision.
Michael Casey CPA
Business Consultant
608-271-0068
One Response for "Why is it important to evaluate capital budgeting projects on the basis of incremental after-tax cash flows?"
Because capital expenditures can sometimes result in meaningful tax savings – i.e. tax depreciation and Sec. 179 expense elections, The tax savings provides a complete picture of the possible decision.
Michael Casey CPA
Business Consultant
608-271-0068
Leave a reply