Asked by sasha
If depreciation is not a cash flow item, why does it affect the level of cash flows from a project in any way?
Why are we interested only in incremental cash flows rather than total cash flows?
Why are we interested only in incremental cash flows rather than total cash flows?
Answers
Answered by
Anonymous
a firm utilizes a strategy of capital rationing , which is currently $250,000 and its considering the following 2 project A has a cost of $150,000 and the following cash flows:
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