Identifying and estimating pertinent project cash flows is conceivably the most challenging phase of economic analysis. Cash flows may be ordered into one of three groups: operating activities, investing activities, and financing activities.

Respond to the following in a minimum of 175 words:

• 1. Explain four problematic situations that will make determining incremental cash flows difficult.
• 2. Explain two incremental cash flows that will occur at the investment outlay.