Chapter 14. Depreciation
Depreciation addresses how investments in capital assets are charged off against income over several years. This is an important part of calculating after-tax cash flows, which is critical to accurately addressing income taxes. Software itself typically isn't depreciated, but if you're working on proposals with a planning horizon longer than one year, the proposals involve capital assets (such as buildings and equipment), and you need to accurately reflect the effects of income taxes in the decision analysis, then depreciation will be an important factor to include in the analysis. Another reason to understand depreciation is that your software project proposals will probably be compared against nonsoftware proposals, ...
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