Question: When evaluating a capital budgeting project, it is generally better to use the net income rather than the cash flow that the project is expected

When evaluating a capital budgeting project, it is generally better to use the net income rather than the cash flow that the project is expected to generate duning its life, because net income represents the "bottom line" that the asset will payoff to the firm and thus indicates the actual benefit of investing in the asset.

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When evaluating a capital budgeting project, it

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