Question.2663 - Why does capital budgeting rely on analysis of cash flows rather than on net income?
Answer Below:
There xxx several xxxxxxx why xxxxxxx budgeting xxxxxx on xxxxxxxxx cash xxxxx rather xxxx on xxx income xxxx flows xxxxxxx a xxxxx understanding xx the xxxxxxxxx impact xx allowing xxxxxxxxxxxxxxx to xxxxx on xxx actual xxxx transactions xxxxxxx to xxx investments xxxx the xxxxxxxx perspective xxxx is xxxx to xx king xxxxxxx it xxxxxxxx a xxxx accurate xxxxxx of xxx project's xxxxxxxxx and xxxxxxx to xxxxxxxx some xxxxx to xxxxx expenses xxxxxx et xx Net xxxxxx is xx accounting xxxxxxx that xxxxxxxx non-cash xxxxx such xx depreciation xxxxxxx cash xxxx represents xxx actual xxxxxxx and xxxxxxxx of xxxx over xxxx nbsp xxxx ReferencesHamdan x H xxxxxx I x Flayyih x H xxx Talab x R xxxxx capital xxxxxx and xxxxxxxxxxx analysis xx predict xxxxxx cash xxxxx and xxxxxxxx investment xxxxxxxx Empirical xxxxx at xxxxx company xxx production xxxxxxxxx and xxxx and xxxxx crops xxxx Journal xx Engineering xxx Applied xxxxxxxx nbsp x nbspMore Articles From Finance