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Commerce · Q810

Costing

Graduate and Post Graduate · Commerce · question 810

Q810

Why are the estimated benefits from a project are expressed as cash flows instead of income flows?

A.
It is cash, not accounting income, that is central to the firm's capital budgeting decision
Answer
B.
It is simple to calculate cash flows than income flows
C.
Both A and B
D.
None of the above

Answer: Option A

Solution

Answer: Option A
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