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 work with uneven cash flows. In fact, these methods are specifically developed to handle the complexities of cash flows that fluctuate over time.

Capital Budgeting Methods Will Not Work with Unequal Cash Flows