Why doesn't depreciation get a tax shield?

FCFF = NI + NCC + Int( 1-Tax rate )-FCInv-WCInv

Since NCC (D&A) is accounted for in Opex, shouldn’t it be added back post-tax like the interest?

The tax shield from depreciation is already accounted for in NI and we are trying to arrive at unlevered cash flows (no interest).

As you want to calculate the cash flow before financing expenses and taxes are a cash item you do not eliminate/correct them.

Regards, Oscar

Because people don’t actually pay “depreciation expense”.