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Between two mutually exclusive projects, we should choose the one whose profitability is higher. We do not count the equipment that has been held
Between two mutually exclusive projects, we should choose the one whose profitability is higher. We do not count the equipment that has been held in the capital budgeting process. All else equal, the decrease of account payable leads to a decrease of the free cash flow. The capital expenditure equals the difference between the ending and beginning balances of fixed assets.
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
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978-0133856507, 013385650X, 133856437, 978-0133856439
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