Different Depreciation Methods for Tax Purposes and for Reporting

The depreciation that we used for the project above is assumed to be the same for both tax and reporting purposes. Assume now that Disney uses more accelerated depreciation methods for tax purposes and straight-line depreciation for reporting purposes. In estimating cash flows, we should use a. the depreciation numbers from the tax books b. the depreciation numbers from the reporting books Explain.

This spreadsheet allows you to estimate the cash flows to the firm on a project

Exhibit 5.1: Operating Earnings at Disney Theme Parks in Bangkok
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