Depreciation expenses should be added to after-tax ebit to get operating cash flows because it is a non-cash charge deducted from revenue in the net income calculation.
Cash flow is the movement of money, real or virtual. Strictly speaking, cash flows are specifically payments from one central bank account to another. The term "cash flow" is most commonly used to describe cash flow. Cash flow refers to the net balance of cash entering or exiting a company at a particular point in time.
Cash flows in and out of business all the time. For example, when a retailer purchases inventory, money flows from the store to the supplier.
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