Sir in the section B-Question 1 of the open tuition mock exam, why did we deducted the incremental costs from the additional revenue to get the annual cash flow of 5 years? Should’nt the incremental costs be added to the revenue? Thank you
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Annual cash flow
8y ago#1Revenue is a receipt of cash. Costs involve paying cash. The net cash flow is the receipts less the payments.
Thank you so much Mr. John
8y ago#3You are welcome :-)
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