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Identifying and estimating pertinent project cash flows is conceivably the most challenging phase of economic analysis. Cash flows may be ordered into one of three groups: operating activities, investing activities, and financing activities.

Respond to the following in a minimum of 475 words: 

  • Explain four problematic situations that will make determining incremental cash flows difficult. 
  • Explain two incremental cash flows that will occur at the investment outlay. 

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