Question: How is the pro forma statement we used in this chapter for computing OCF different from an accountants income statement? Why does a decrease in

  1. How is the pro forma statement we used in this chapter for computing OCF different from an accountants income statement?
  2. Why does a decrease in NWC result in a cash inflow to the firm?
  3. Everything else held constant, would you rather depreciate a a project with straight-line depreciation or with DDB?

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