Errors Found in Capital Expenditure Request and Excel File - Impact on Financial Analysis
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In this document we will discuss about Impact on Financial Analysis and below are the summary points of this document:-
Correction needed in the CER regarding the total operating profits achieved from the investment
Depreciation expense should be deducted from operating profit and added back to cash flow after tax to arrive at free cash flow
Cash flows should be discounted using the weighted average cost of capital (WACC) rate