Question: Most firms generate cash flows every day, not just once at the end of the year. In capital budgeting, should we recognize this fact by

Most firms generate cash flows every day, not just once at the end of the year. In capital budgeting, should we recognize this fact by estimating daily cash flows and then using them in the analysis? If we do not, are our results biased? Is so, would the NPV be biased up or down?

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