The accelerate depreciation will accelerate the investment return that eventually will increase the IRR and NPV values.

Does depreciation affect NPV?

The depreciation taken on the asset in future periods is not a cash flow and is not included in the NPV and IRR calculations.

How does an accelerated depreciation rule usually affect NPV for a project?

Since depreciation is a cash expense, the faster an asset is depreciated, the lower the projected NPV from investing in the asset. ... Using accelerated depreciation rather than straight line normally has the effect of speeding up cash flows and thus increasing a project's forecasted NPV.