Cash Flow for Capital Budgeting
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Questions and Answers

Which category of cash flow is not taken into account when estimating cash flows for capital budgeting?

  • All categories are taken into account
  • Cash flow from capital investment expenditures
  • Cash flow from operations
  • Cash flow from financing activities (correct)
  • What is the purpose of combining the three categories of cash flow for capital budgeting projects?

  • To analyze project cash flows
  • To estimate cash flows
  • To determine the overall cash flow over a specific period (correct)
  • To assess the financial performance of the projects
  • Which category of cash flow represents the cash generated or used in day-to-day operations of the business?

  • Cash flow from operations (correct)
  • All categories represent day-to-day operations
  • Cash flow from financing activities
  • Cash flow from capital investment expenditures
  • Which category of cash flow includes activities related to raising and repaying capital?

    <p>Cash flow from financing activities</p> Signup and view all the answers

    Which category of cash flow includes expenditures on acquiring or disposing of long-term assets?

    <p>Cash flow from capital investment expenditures</p> Signup and view all the answers

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