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Most top executives are graded primarily on their results in terms of net income rather than net cash flow. Why,

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Most top executives are graded primarily on their results in terms of net income rather than net cash flow. Why, then, is capital budgeting done with incremental cash flows rather than with incremental net income?

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...

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Net income is an accounting construction designed to indicate the long …View the full answer


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Practical financial management

Practical financial management

ISBN: 978-0324422634

5th Edition

Authors: William r. Lasher

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Question Posted: September 13, 2012 03:46:16
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