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You are tasked with analysing and interpreting multiple new agricultural projects for a large multi-national investor client.(a)You are reviewing the historical financial and economic performance
You are tasked with analysing and interpreting multiple new agricultural projects for a large multi-national investor client.(a)You are reviewing the historical financial and economic performance of the company and the client notices a discrepancy between annual profits calculated by the accountant versus your economic profit analysis. Use an example to illustrate to the client how a profit measure can differ between a cash-based profit (accounting) versus an economic measure of performance? Which should the client focus on and why?
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