Why is it important to evaluate capital budgeting projects

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Reference no: EM131052258

Why is it important to evaluate capital budgeting projects on the basis of incremental cash flows?

Distinguish between three basic cash flow components of a capital project 1) Initial investment 2) Operating cash inflows 3) Terminal cash flows

Explain how each of the following inputs is used to calculate the initial investment 1) Installed cost of new asset 2) Proceeds from the sales of old asset 3) Change in net working capital

Reference no: EM131052258

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