Cash Flow for Capital Budgeting

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5 Questions

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

Cash flow from financing activities

What is the purpose of combining the three categories of cash flow for capital budgeting projects?

To determine the overall cash flow over a specific period

Which category of cash flow represents the cash generated or used in day-to-day operations of the business?

Cash flow from operations

Which category of cash flow includes activities related to raising and repaying capital?

Cash flow from financing activities

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

Cash flow from capital investment expenditures

Test your knowledge on understanding cash flow for capital budgeting projects with this quiz. Learn about the three main categories of cash flow and how they contribute to assessing the financial performance of projects.

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