Cash Flow And Accounting Profit
C. Cash Flow and Accounting Profit
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Let us do little research and get into a very practical discussion this week.
- What is the difference between “Cash Flow” and “Accounting profit”?
- Why do you think a manager puts more focus on cash flows rather than accounting profits in making our capital budgeting decisions?
- Why are we interested only in incremental cash flows rather than total cash flows?
Please comment on other postings and/or provide relevant links for the discussion this week.
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