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If Company A increases its inventory from year 1 to year 2 would this increase be modeled as an inflow or outflow of cash? Why

  1. If Company A increases its inventory from year 1 to year 2 would this increase be modeled as an inflow or outflow of cash?
  2. Why is it important to have "post-audit" on a project?
  3. What is the role of depreciation in estimating operating stage cash flows.
  4. Discuss a possible "negative externality" associated with a capital budgeting project?
  5. All the projects require the same level of cash flow estimation or do some require more?

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