Estimating cash flows isn’t difficult, but it is complicated, as there are a lot of little details to keep track of. Having a systematic approach to handling and arranging details is key to successful...

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Estimating cash flows isn’t difficult, but it is complicated, as there are a lot of little details to keep track of. Having a systematic approach to handling and arranging details is key to successful finance management and advancing organizational goals.






Respond to the following in a minimum of 175 words:



  • Discuss a business example that shows how depreciation and accelerated depreciation can affect project cash flows.

  • What would your process be to ensure that all related financial details are allocated for and tracked so as to assist in making sound business decisions?

Answered 2 days AfterJan 04, 2021

Answer To: Estimating cash flows isn’t difficult, but it is complicated, as there are a lot of little details...

Abhishek answered on Jan 06 2021
145 Votes
Running Head: CORPORATE FINANCE                            1
CORPORATE FINANCE                                    2
CORPORATE FINANCE
Table of Contents
Answer to Question 1    3
Answer to Question 2    3
References    4
Answer to Question 1
The effect of depreciation on operating cash flow is not negative. Depreciation mainly affects the investing cash flow of the company. Other than this the return on equity is affected by the depreciation of the fixed asset. The value of the asset decreases with depreciation this leads to the fall in the return on equity. The equity is calculated based on the difference between the value of equity and the liabilities (Ohrn, 2019).
The shareholders lose value on the...
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