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Why do we focus on cash flows instead of profits when evaluating proposed capital budgeting projects?
We focus on cash flows at the place of profits when evaluating proposed capital budgeting projects because it is cash flow that changes the value of a firm. You can spend cash but you can't spend profit.
What is the difference between the Euronote market, the Euro-medium-term-note market, and the Eurocommercial paper market? Answer: Euronotes are short-term notes guarantees by
Q. Explain Safe Harbour Rule? Safe Harbour Rule - Concept in statutes and regulations whereby a person who meets listed requirements would be preserved from adverse legal actio
Accounting Period - Accounting Principle Accounting period refers to span of time at the end of that and for which the financial statement are prepared to throw light on the r
discuss the applicability operating cycle considering broilers in uganda?
The sales manager considers that there will be substantial foreign exchange risk in trading with Werland. Payment is unpaid in Werland francs in three months time. The current ster
In the Index Amortizing note, the principal is repaid according to an amortization schedule linked to a specific reference rate. It is structured in such a manner
Types of equaty Securities Equity securities, traditionally, are classified into two types when they are issued. They are: Common Stock, and Preferred Stock. Common Stoc
The price-yield relationship of a non-callable or a non-putable bond is convex because price and yield are inversely proportional. Figure 1 shows the price-yield
The holder of a corporate debt instrument is preferred to equity shareholders in the bankruptcy proceedings. However, secured/senior creditors are preferred to no
Define risk. Examine the need for assessing the risks in a project
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