Why does capital budgeting rely on analysis of cash flows, Financial Management

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Why does capital budgeting rely on analysis of cash flows

1. Why does capital budgeting rely on analysis of cash flows rather than on net income?

2. What kinds of factors do you want to think about when choosing a benchmark to use?

3. A corporation has already sponsored a soft launch of a new suite of software among select customers, and now they are trying to decide their next steps. The expense of the soft launch is called a (an)

A. Overhead cost

B. opportunity cost

C. Sunk Cost

D. Direct Cost

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Financial Management: Why does capital budgeting rely on analysis of cash flows

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