Operating cash flows, rather than accounting profits, are used in project analysis. What is the basis for

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Operating cash flows, rather than accounting profits, are used in project analysis. What is the basis for this emphasis on cash flows as opposed to net income?

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Corporate Finance A Focused Approach

ISBN: 978-1439078082

4th Edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Question Posted: Sep 23, 2011 11:24 AM

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Operating cash flows, rather than accounting profits, are used in project analysis. What is the basis for

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Only cash can be spent or reinvested and since accounting profits do n...View the full answer

Corporate Finance A Focused Approach

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