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Sat 18 Feb, 2017 10:26 pm
hi everyone,
I have this question:
Does the choice of depreciation method (straight line vs. MACRS) affect the value of the profitability index for an investment project? I know that depreciation can affect cash flows by serving as a tax shield, so it seems like it should affect the PI - however, i'm not sure if choosing straight line vs. MACRS would have any impact on the PI.
Let me know what you think.