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Why does capital budgeting rely on analysis of cash flows rather than on net income? Explain the role of financial intermediaries in the flow of

Why does capital budgeting rely on analysis of cash flows rather than on net income? Explain the role of financial intermediaries in the flow of funds through the three-sector economy? Discuss the relationship between bond prices and interest rates. What impact do changing interest rates have on the price of long-term bonds versus short-term bonds?

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