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To: Mohan Marette who wrote (53401)7/23/1998 10:53:00 AM
From: Boplicity  Read Replies (1) | Respond to of 176387
 
Thread members that went to the share holders love fest. Was there any mention of plants in South America?

Greg



To: Mohan Marette who wrote (53401)7/23/1998 2:03:00 PM
From: Chuzzlewit  Read Replies (3) | Respond to of 176387
 
Mohan, yes. When you build you create a depreciable fixed asset. Land is never depreciated. The expense is depreciation and is spread out over several years. But financial analysts look at things a little (a lot, actually) differently. We watch cash flows, and building represents expended cash. On the other hand, the tax consequences of depreciation creates cash inflows. That's why we like rapid depreciation.

TTFN,
CTC


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