Cash flows rather than accounting profits
Why do we focus on cash flows rather than accounting profits in making our capital-budgeting decisions? As a financial manager, explain which types of cash flows you would consider in evaluating an investment and why. Explain what is meant by options in capital budgeting and how they could influence a capital investment decision.
Search the SEU library or the internet for an academic or industry-related article. Select an article that relates to these concepts and explain how it relates to doing business in Saudi Arabia.
For your discussion post, your first step is to summarize the article in two paragraphs describing what you think are the most important points made by the authors (remember to cite the information, as appropriate). For the second step, include the reference listing with a hyperlink to the article. Please note, do not copy the article into your post and limit your summary to two paragraphs. Let me know if you have any questions. Enjoy your search.
Be sure to support your statements with logic and argument, citing all sources referenced. Post your initial response early, and check back often to continue the discussion. Be sure to respond to your peers’ posts as well.
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