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Godty Godty
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6 months ago
Incremental cash flows are of primary interest in capital budgeting decisions because

▸ they are more relevant than intangible costs and benefits.

▸ the change in the company's future cash flows is what is being estimated.

▸ they are able to correct for a portion of the uncertainty due to the long time horizon.

▸ they are the easiest cash flows to identify.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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kitty123kitty123
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