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Addison Hildebrandt
on Dec 01, 2024

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Cash flow estimation concerns:

A) cash flows associated with future projects.
B) cash flows associated with estimation techniques, like NPV.
C) cash flows associated with estimation techniques, like IRR.
D) All of these

Cash Flow Estimation

This refers to the process of forecasting and evaluating the amount of cash that is expected to flow into and out of a business over a specific period.

NPV

Net Present Value; a method used in capital budgeting to assess the profitability of an investment or project.

IRR

Internal Rate of Return, a financial metric used to evaluate the profitability of potential investments.

  • Comprehend the significance of incremental cash flows in the context of capital budgeting.
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Sophia LaVistaDec 08, 2024
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