In some contexts (the analysis of financial leases, for example) depreciation tax shields are treated as safe, nominal cash flows and are discounted at an aftertax borrowing or lending rate.
When, say, a company builds a factory, financial rules require it to spread the cost over many years based on depreciation, letting investors know the value of its assets.
If you account for depreciation, public investment in western infrastructure is negative, notes Klaus-Heiner R? hl of the Cologne Institute for Economic Research.