What impact would using the Double Declining Depreciation method have on FCFF? According to my mock, it says no impact. My thought was that since depreciation is added to EBIT, and would be higher under the double method, it should raise FCFF.
I think you add back depreciation, so changing deprecation method wont impact FCFF or FCFE.
Ohh that’s a good point. Thanks.
Also, for whatever it’s worth, it’s double declining balance depreciation.
Yes: I’m in one of those moods.