Assignment
After reviewing this assigned reading, answer the following questions. Be sure to write clearly, using complete sentences. Enter answers as this template.
• In regard to capital budgeting, why do we tend to focus on cash flows rather than net income?
• Explain the difference between accounting income and cash flow.
• In a capital budgeting analysis, explain why opportunity costs and external factors are included in the analysis but sunk costs are not.
• In a capital budgeting analysis, why are interest charges not deducted when a project's cash flows are calculated?
• Is it worth the effort to estimate daily project cash flows? Would doing so be helpful in the investment analysis? How would the results be negatively or positively affected?
Format your assignment according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, and typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the assignment, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.