Question 1. The CFO of your company comments, "I don't understand why other companies waste so much time by creating budgets. I set company goals, and everyone strives to meet them." Is this a valid approach? How would you respond to the CFO?
Question 2. A classmate in your accounting class says, "Depreciation is a source of cash flow for a company. We even include it in our NPV analysis." Is your classmate's assertion correct? Explain.