The net cash flows for any year during the life of a capital expenditure project are equal to the change in ____ plus the change in ____.

Question

Quizplus · Accepted Answer

Net cash flows during the life of a capital expenditure project are equal to the change in earnings after taxes plus the change in depreciation. This is because depreciation is a non-cash charge that reduces taxable income, thereby affecting the net cash flows.

The Net Cash Flows for Any Year During the Life