Question: Your boss is very puzzled by the finance courses in
Your boss is very puzzled by the finance courses in his MBA program. He has learned that “cash flow is king,” but notices that the capital budgeting problems spend a lot of time and effort dealing with depreciation and CCA but not with interest expenses. He knows that depreciation and CCA are non-cash expenses, and he knows that interest is definitely a cash expense. He would like an explanation of why he needs to bother with depreciation and CCA and not with interest expense.
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