Cash flows, rather than accounting profits, are used in project analysis. What is the basis for this

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Cash flows, rather than accounting profits, are used in project analysis. What is the basis for this emphasis on cash flows as opposed to net income?

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Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

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Question Posted: Mar 10, 2024 12:02 AM

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Cash flows, rather than accounting profits, are used in project analysis. What is the basis for this

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Answer The emphasis on cash flows rather than accounting profits in project analysis is based on several key factors Cash Flows Reflect Liquidity Cash ...View the full answer

Intermediate Financial Management

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