Accelerated depreciation is helpful in increasing the overall net present value of a project because accelerated depreciation will reflect higher amount of depreciation tax shield which will be enhancing the overall net present value associated with a particular project because when there will be higher depreciation tax shield, it will be resulting into higher amount of cash inflows for the company in the initial years and higher amount of depreciation in initial year will be leading to higher depreciation tax shield which will be resulting into higher value.

Normal depreciation methods will offer depreciation mostly in later years and it will be living into lower amount of depreciation tax shield which will be claimed in the books of accounts so it is always better to lower Deep depreciation tax shield in later years and allocate more towards earlier years and it is better to adopt accelerated depreciation method.

we will be trying to ensure that all the cash flows and depreciation had been adequately discounted in the initial years and it has been adjusted with the depreciation tax shield in order to arrive at net present value because depreciation tax is a part of operating cash flow and it will be accounted in the incremental cash flows while we are adopting with net present value method.

Another Answer: Discuss a business example that shows how depreciation and accelerated depreciation can affect project cash flows.

- For example, if a company buys a vehicle for $30,000 and plans to use it for the next five years, the depreciation expense would be divided over five years at $6,000 per year. Each year, depreciation expense is debited for $6,000 and the fixed asset accumulation account is credited for $6,000. After five years, the expense of the vehicle has been fully accounted for and the vehicle is worth $0 on the books. Depreciation helps companies avoid taking a huge expense deduction on the income statement in the year the asset is purchased.

What would your process be to ensure that all related financial details are allocated for and tracked so as to assist in making sound business decisions?

-While it may sound boring or esoteric, financial accounting plays a key role that allows businesses to keep track of all their financial transactions. It is the process in which companies record and report the pieces of financial data that go in and out of its business operations that allow both company managers and outside investors and analysts to understand the company's health and make informed decisions.