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Capital Decision for Cash Flows or Accounting Profits

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Should a company focus on cash flows or accounting profits in making a capital decision? Should the company be interested in incremental cash flow, incremental profit, total free cash flow, or total profit.

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The solution examines capital decision for cash flows or accounting profits.

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Should a company focus on cash flows or accounting profits in making a capital decision? Should the company be interested in incremental cash flow, incremental profit, total free cash flow, or total profit.

Capital Budgeting is a decision which involves deciding the long term ...

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