The current cash flow from existing assets is highly relevant to the investor. However, since the value of the firm depends primarily upon its growth opportunities, profit projections from those opportunities are the only relevant future flows with which investors are concerned. True False

False

Explanation:

Statement of Cash Flows

This depicts the changes in cash for the same period of time as that covered by the income statement. The cash flow statement depicts all sources such as receipts of cash and all the users such as payments of cash. This provides information abou cash receipts (inflows) and cash payments (outflows).

The Categories of Cash Inflows and Outflows includes

1. Operating Activities

2. Investing Activities

3. Financing Activities

The intrinsic value of a company's operations is as a result of the different sources of cash flows that the operations will generate now and in the future, in general, the value of operations depends on all the future expected free cash flows and not just growth.