The flow back of profit plus depreciation from a given project is called?

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The term that describes the flow back of profit plus depreciation from a given project is cash flow. Cash flow refers to the movement of money into and out of a business or project, capturing the impact of revenues (profit) and expenses (including non-cash expenses like depreciation).

In this context, cash flow provides a crucial insight into a project's financial health, as it reflects the actual cash generated and available for reinvestment, paying down debt, or distribution to shareholders. Depreciation, while a non-cash expense, is included in the calculation of cash flow because it affects taxable income and ultimately influences the amount of cash that can be retained by the project.

Understanding cash flow is essential for project evaluation, as it allows decision-makers to assess the viability and sustainability of a project over time, providing a more accurate picture of its economic impact compared to just analyzing profit or accounting earnings.

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