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1. Capital: What are the two basic sources of funds for all businesses? 2. Management role: What is net working capital? 3. Cash flows: Explain

1. Capital: What are the two basic sources of funds for all businesses?

2. Management role: What is net working capital?

3. Cash flows: Explain the difference between profitable and unprofitable firms.

4. Management role: What three major decisions are of most concern to financial managers?

5. Cash flows: What is the appropriate decision rule for a firm considering undertaking a capital project? Give a real-life example.

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