Which factor must a manager estimate when making a capital investment decision?

Question

Quizplus · Accepted Answer

The timing of cash flows is a crucial factor that a manager must estimate when making a capital investment decision. This involves forecasting the expected inflows and outflows of cash over the life of the investment, considering factors such as the initial investment, ongoing expenses, and expected revenue. By assessing the timing of cash flows, a manager can make an informed decision about whether the investment is likely to generate a positive return and whether the returns will be sufficient to justify the initial investment.

Which Factor Must a Manager Estimate When Making a Capital