How is depreciation treated when using the Net Present Value Approach of Investment Appraisal?

For Investment appraisal, we need to list all our Cash inflows as well as Initial investment AND we add Residual value to the last year cash inflow to get NPV. depreciation is non-cash and irrelevant in NPV computation.

Thank you for invitation. depreciation is an irrelevant cost therefore it would not be used in computing the net present value of an investment.

Thanks for invitation,

Following up the replies of our colleagues.

In NPV calculation, depreciation is an irrelevant cost therefore it would not be used in computing the net present value of an investment.

instead of using depreciation, capital allowance is calculation on the tangible qualifying asset and it is considered as a cost reduction item (ie a +) to reduce taxation effect in the NPV calculation

Thanks

I am sorry I have not much experience in this field, I prefer to wait for more answers