Capital budgeting decisions are based on free cash flow because free cash flow better reflects when money is received and available for reinvestment than account profits True or False ...

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Capital budgeting decisions are based on free cash flow because free cash flow better reflects when money

Question:

decisions are based on because better reflects when money is received and available for reinvestment than account profits. True or False.
Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the... Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...