1. Assuming you are the Chief Financial Officer (CFO) of the firm you chose in week 1, state your company's name and explain why you would focus more on cash flows rather than accounting profits in making your capital-budgeting decisions? Why are you interested only in incremental cash flows rather than total cash flows?
2. Assuming the company you chose in week 1 has recently reinstated the payment of cash dividends, which had been suspended since the 1990s. What are some reasons that might have influenced your firm’s senior executive decision to begin paying dividends again? What criteria did your firm consider before declaring dividends?