askme3
May 1, 2010, 09:30 PM
The reason cash flow is used in capital budgeting is because: (Points: 5)
cash rather than income is used to purchase new machines.
cash outlays need to be evaluated in terms of the present value of the resultant cash inflows.
to ignore the tax shield provided from depreciation ignores the cash flow provided by the machine which should be reinvested to replace old worn out machines.
All of the above
cash rather than income is used to purchase new machines.
cash outlays need to be evaluated in terms of the present value of the resultant cash inflows.
to ignore the tax shield provided from depreciation ignores the cash flow provided by the machine which should be reinvested to replace old worn out machines.
All of the above