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Finance

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If depreciation is not a cash flow item, why does it affect the level of cash flows from a project in any way?

Why are we interested only in incremental cash flows rather than total cash flows?

  • Finance -

    a firm utilizes a strategy of capital rationing , which is currently $250,000 and its considering the following 2 project A has a cost of $150,000 and the following cash flows:

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