net working capital

1. Cash flows rather than accounting profits are listed in Table 10-2. What is the basis for this emphasis on cash flows as opposed to net income?
2. Look at Table 10-4 and answer these questions:
a. Why is the net salvage value shown in Section III reduced for taxes?
b. How is the change in depreciation computed?
c. What would happen if the new machine permitted a reduction in net working capital?
d. Why are the cost savings shown as a positive amount?