Why do we focus on cash flows in place of profits when, Ask an Expert

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Why do we focus on cash flows in place of profits when evaluating proposed capital budgeting projects?

We focus on cash flows in place of profits while evaluating proposed capital budgeting projects as it is cash flow that changes the value of a firm. You can use cash but you cannot spend profit.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9543933

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