Annual net cash flows are defined as
A)annual cash inflows minus annual cash outflows.
B)annual cash inflows minus annual cash outflows minus depreciation expense.
C)annual revenues plus cash expenses.
D)annual cash inflows minus depreciation expense.

Question

Quizplus · Accepted Answer

Annual net cash flows are calculated by subtracting annual cash outflows from annual cash inflows, focusing solely on actual cash transactions rather than accounting deductions like depreciation.

Annual Net Cash Flows Are Defined as