Net Out Effect Of Depreciation and Capital Expenditure

A short video tutorial on the concept behind why depreciation and capital expenditure (CAPEX) will net out each other in the long run.

A useful concept to understand for any financial modeling exercise that deals with companies in the start up phase which incur capital investments that require it to produce the cash flow necessary for it to eventual transit into a more stable going concern. The video also explains why working capital will also net out in the long run.


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