The cash flows used in capital budgeting calculations are based on.

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Cash flows used in capital budgeting calculations are based on forecasts of future cash revenues, expenses, and investment outlays. Historical estimates may be used as a starting point, but they are not sufficient on their own. Cash flow forecasts are necessary to determine the potential profitability and feasibility of a project. Forecasts of profit or retained earnings available for financing projects are not sufficient on their own because they do not provide enough information about the specific cash inflows and outflows of a project.

The Cash Flows Used in Capital Budgeting Calculations Are Based