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Capital budgeting forecasts are based on cash flow not income because: cash flow is real, while net income is just an accounting idea. net income
Capital budgeting forecasts are based on cash flow not income because: cash flow is "real", while net income is just an accounting idea. net income can be "managed", while cash flow cannot. cash flow can be spent or invested, while net income cannot. O all of the other answers are correct. 1
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