capital structure and investment decisions 3

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Why do we focus on cash flows rather than accounting profits in making our capital-budgeting decisions? As a financial manager, explain which types of cash flows you would consider in evaluating an investment and why. Explain what is meant by options in capital budgeting and how they could influence a capital investment decision.

Direction:

  • writing standards and APA style guidelines.
  • Be sure to support your statements with logic and argument, citing all sources referenced
  • Write 4 paragraph essays (Introduction, body and conclusion)

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