Operating cash flows rather than accounting income are listed in the picture below. Why do we focus on cash flows as opposed to net income in capital budgeting?

E F G H B C D A 62 63 Price NPV 64 $2,500 65 66 67 68 $1,500 Units 69 70 71 $500 72 WACC 73 74 Equipment 25% 75 -25% -$500 Fixed Costs 76 77 78 79 -$1,500 80 81 Percentage Deviation from Base 82 -$2,500 83 84 85 86 87 Deviation NPV with Variables at Different Deviations from Base 88 from Base Sales Price VC/Unit Units Sold Fixed Costs Equipment WACC 89 25% $2,526.86 -$1,245.67 $1,202.37 -$872.14 -$71.26 $33.62 90 0% $78.82 $78.82 $78.82 $78.82 $78.82 $78.82 91 -25% -$2,369.22 $1,403.31 -$1,044.73 $1,029.78 $228.90 $127.62 92 Range $4,896.07 $2,648.97 $2,247.10 $1,901.92 $300.17 $93.99 Notes