1. To fi nance a certain project, a company must borrow money at 10 percent interest. How should it treat interest payments when it analyzes the project’s cash fl ows? 2. In capital budgeting...

1. To fi nance a certain project, a company must borrow money at 10 percent interest. How should it treat interest payments when it analyzes the project’s cash fl ows?

2. In capital budgeting analysis, why do we focus on cash fl ow rather than accounting profi t?

May 26, 2022