C. Cash Flow and Accounting Profit
Let us do little research and get into a very practical discussion this week.
- What is the difference between “Cash Flow” and “Accounting profit”?
- Why do you think a manager puts more focus on cash flows
rather than accounting profits in making our capital budgeting
- Why are we interested only in incremental cash flows rather than total cash flows?
Please comment on other postings and/or provide relevant links for the discussion this week.