January 2015
Beginner
480 pages
31h 42m
English
Content preview from Financial Management: Core Concepts, Third Edition
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Chapter 10 Cash Flow Estimation
AT a Glance
LO1 Understand the importance of cash flow and the distinction between cash flow and profits.
Profits are the accounting-measured performance of a company over a specific period of time. Because of accrual accounting, profits do not always equal cash flow for the period. In fact, profits and cash flow are rarely the same. Cash flow is the important variable for decision making.
LO2 Identify incremental cash flow.
Incremental cash flow is the increase in cash above the current cash flow that is generated by the addition of a new project. Some costs and revenues would appear on the surface to be associated ...
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