ABSTRACT
In the years that the project loses money, this loss can be used to recover an equivalent part of
the profits of other projects owned by the same organization. It is a practice in all financial
analysis calculations to assume that there is always a project to which this loss can be applied
to. Depreciation, as will be discussed in this chapter, is considered a legitimate expense
while in reality it is a virtual expense and is used to recover the initial cost.
