Of the two processes involved in capital budgeting, cash flow estimation and the application of analytical techniques like NPV and IRR, the more difficult is the application of the analytical techniques.

Question

Quizplus · Accepted Answer

While cash flow estimation requires careful consideration and forecasting of future cash flows, the application of analytical techniques like NPV and IRR involves mathematical calculations that can be easily learned and applied.

Of the Two Processes Involved in Capital Budgeting, Cash Flow