why do we focus on cash flows in place of profits, Financial Management

why do we focus on cash flows in place of profits

Why do we focus on cash flows in place of profits when evaluating proposed capital budgeting projects?

We focus on cash flows in place of profits while evaluating proposed capital budgeting projects as it is cash flow that changes the value of a firm. You can use cash but you cannot spend profit.

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Financial Management: why do we focus on cash flows in place of profits

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Financial Management: why do we focus on cash flows in place of profits

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