In capital budgeting, the accounting methods make use of data presented on "his past financial statements to express the economic results of a capital project.

Question

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Capital budgeting primarily focuses on the future cash flows and potential returns of a project rather than relying on past financial statements. It uses techniques like Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period, which are forward-looking and project the future financial performance of an investment.

In Capital Budgeting, the Accounting Methods Make Use of Data