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Is depreciation deducted when using the IRR, NPV or the discounted payback method?
Does the depreciation method used affect how it is deducted?
Yes, the depreciation method used will affect the amount of depreciation expense that is deducted. For example, the straight-line depreciation method will evenly spread out the depreciation expense over the useful life of the asset, while the accelerated depreciation method will have higher depreciation expenses in the earlier years.