Phil has put together the worksheet above with a 5-year cash flow estimate for his shoe company. He needs to explain the chart to his investors. Please answer the questions below using this figure as a reference.
-To determine the projected cash flow, Phil must now total the following: taxable income, depreciation added back to the cash flow, and principal payments deducted from the cash flow (already a negative value) . Phil enters the following formula in cell C24 and copies it across the row: ____.
Definitions:
Judgment
The capability to reach reasoned decisions or sensible judgments.
Heuristic Thinking
A cognitive process that simplifies decision making by using practical methods or experiential rules of thumb, often at the cost of accuracy or thoroughness.
Elimination by Aspect Heuristic
A decision-making process where alternatives are discarded by systematically evaluating them against a set of criteria.
Error
A mistake or discrepancy caused by a failure in judgment, incorrect reasoning, or an oversight.
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