That is exactly where I am getting messed up, due to the investments which do have very long life will show negative income.
And if possible, please explain, how one has to think about those allowances? Yes, we have to understand the business in and out for that figure, for simplification we take that amount as fixed cost right?
Traditional formula created by bruce greenwald for maint capex, wont work here. So yeah, I guess only after quite deep understanding we will be able to calculate those allowances.
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