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    Financial Management Theory and Practice Study Set 1
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    Exam 11: Cash Flow Estimation and Risk Analysis
  5. Question
    Since the Focus of Capital Budgeting Is on Cash Flows
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Since the Focus of Capital Budgeting Is on Cash Flows

Question 14

Question 14

True/False

Since the focus of capital budgeting is on cash flows rather than on net income,changes in noncash balance sheet accounts such as inventory are not relevant in a capital budgeting analysis.

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