Business > Study Notes > - Determine thenet cash inflowsfor this project (All)
- Determine thenet cash inflowsfor this project in two different ways (as listed below). Are net cash flows the same under either approach? SelectYesNoItem 3 - What is the impact of income taxes o ... n net cash flows? SelectHigherLowerItem 4the net cash inflows by$Net Cash Inflows Receipts and disbursements $ Income adjustment procedure $ Solution Net Cash flow is same irrespective of the method used to obtain its value. In either case the net cash flow will be = 400,000 - 200,000 -12,000 = 188,000. (Depreciation is a noncash expense, so it is not considered.) - Determine thenet cash inflowsfor this project in two different ways (as listed below). Are net cash flows the same under either approach? SelectYesNoItem 3 - What is the impact of income taxes on net cash flows? SelectHigherLowerItem 4the net cash inflows by$Net Cash Inflows Receipts and disbursements $ Income adjustment procedure $ Solution Net Cash flow is same irrespective of the method used to obtain its value. In either case the net cash flow will be = 400,000 - 200,000 -12,000 = 188,000. (Depreciation is a noncash expense, so it is not considered.) [Show More]
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