# Question

Why do we use forecasted cash flows instead of forecasted accounting earnings in estimating the NPV of a project?

## Answer to relevant Questions

Archers Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12 million. The investment will consist of $2 million for land and $10 ...The operating cost for a proposed waste-water treatment plant is estimated as $500,000 per year, increasing by $100,000 each year after the first. Assume i = 6 percent. Find the following:a) Equivalent annual cost of all ...Given that z is a standard normal random variable, compute the following probabilities.a) P(z ≤ -1.09)b) P(z ≤ -1.5)c) P(z ≥ 1.3)d) P(z ≥ 2.54)e) P(-0.71 < z ≤ 2.54)A student group maintains that each day, the average student must travel for at least 25 minutes one way to reach college. The college admissions office obtained a random sample of 25 one-way travel times from students. The ...Bottom-up cost estimating determines a project will cost $35,000, while top-down estimating determines the same project will cost $10,000. What specifically can the project manager for the project do to help reconcile these ...Post your question

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