It's important to keep the distinction between earnings and cash flows in mind when doing project projections. Managers invariably want to know the net income impact of projects as well as the results of the capital budgeting analysis.

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It is important to keep the distinction between earnings (net income) and cash flows in mind when doing project projections, and managers often want to know both the net income impact and the results of the capital budgeting analysis.

It's Important to Keep the Distinction Between Earnings and Cash