Hi Andrew.

Thanks for the tips :)

I think I understand that depreciation expense can only be accounted for at my marginal tax rate … e.g. assuming a marginal tax rate of 37.5%, if I ‘incurred’ (on paper) depreciation expenses of $3,000, my income (tax back fom the government) from depreciation expense is $1,125. Is this correct?

It is just that some of the literature I have been reading have been using depreciation expenses as part of the calculation to determine the feasibility of a deal. Or is this just not realistic?

Diver.