Differentiate between cash approach and a profit approach


Assignment Description

Using the Internet and the AIU library, conduct research that supports your answers to the following questions:

Assignment Guidelines

• Address the following in 3-5 pages:

o What are the distinctive differences between a cash approach and a profit approach when choosing a capital project? Explain.

o Under some conditions, projects may be accepted even though the financial ratios indicate otherwise.

. What is your reasoning for accepting a project with possible negative cash flows? Explain your answer in detail, and provide examples.

• Be sure to reference all sources using APA style.

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Other Management: Differentiate between cash approach and a profit approach
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