Capital budgeting methods will not work with unequal cash flows during the capital asset's life. Other methods must be utilized in those cases.

Question

Quizplus · Accepted Answer

Capital budgeting methods, such as net present value and internal rate of return, are designed to handle unequal cash flows over a period of time. These methods take into account the time value of money and discounted cash flows to make investment decisions.

Capital Budgeting Methods Will Not Work with Unequal Cash Flows