Question: Why is capital budgeting such an important process? Why are capital budgeting errors so costly? What's the difference between NPV, PI, and IRR methods. What

Why is capital budgeting such an important process?

Why are capital budgeting errors so costly?

What's the difference between NPV, PI, and IRR methods. What are the advantages and disadvantages of using each of these methods?

Why is there a focus on cash flows rather than accounting profits in making capital-budgeting decisions?

Why such an interest in incremental cash flows rather than total cash flows?

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