economic analysis

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.