A phrase that I didn't understand

[Dadoyan]

I was reading a textbook in which they were trying to project the EBIT(1-t) of a startup. They mention:
"Since all of the initial investment is tax-deductible, we have no depreciation charges to consider. "
So in their projections they ignored depreciation completely. Can someone explain to me why?

 

[kirby]

They ignored depreciation because I'm guessing that no fixed assets were purchased with the initial investment. Depreciation would be in play if there were fixed assets purchased.

 

[LYAK]

My guess is that since the initial investment is tax-deductible, taking depreciation charges would be ignored; since the entire initial investment is tax-deductible, depreciation expenses (in order to lower tax liability) would not be necessary.