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Investment appraisal

UUsman6y ago
Hi sir: Please help me with the following question. Sir to calculate payback' net present values and IRR' we take in to account cash flows rather than book profits. To calculate cash flows we take profits before depreciation as depreciation is non cash. Sir can we take credit sales when calculation cash flows or just cash sales?
John MoffatJohn MoffatTutor6y ago#1
You take all sales - cash and credit. Credit sales still result in a receipt pop cash.
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