Question
Why do we subtract CapEx from NOPAT when projecting cash flows? A) Because CapEx requires capital to be used for investment and it is recognized
Why do we subtract CapEx from NOPAT when projecting cash flows?
A) Because CapEx requires capital to be used for investment and it is recognized as an expense in the income statement
B) Because CapEx is an investment that improves a firm's ability to generate more cash flows going forward
C) Because CapEx requires capital to be used for investment and it is not recognized as an expense in the income statement
D) Because CapEx does not require capital to be used for investment and it is recognized as an expense in the income statement
E) Because CapEx does not require capital to be used for investment and it is not recognized as an expense in the income statement
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Personal Finance An Integrated Planning Approach
Authors: Ralph R Frasca
8th edition
136063039, 978-0136063032
