Capital budgeting rely on analysis of cash flows

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Reference no: EM131343704

1. Why does capital budgeting rely on analysis of cash flows rather than on net income?

2. What kinds of factors do you want to think about when choosing a benchmark to use?

3. A corporation has already sponsored a soft launch of a new suite of software among select customers, and now they are trying to decide their next steps. The expense of the soft launch is called a (an)

A. Overhead cost

B. opportunity cost

C. Sunk Cost

D. Direct Cost

Reference no: EM131343704

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