Estimating daily project cash flows
Problem:
Most Firms generate cash inflows every day, not just once at the end of the year. In capital budgeting, should we recognise this fact by estimating daily project cash flows and then using them in the analysis?
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In capital budgeting, should we recognise this fact by estimating daily project cash flows and then using them in the analysis?
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If City Farm has $5M per day in collections and $3M per day in disbursements, how many dollars has the cash management system freed up?
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