Which of the following are limitations of traditional capital expenditure analysis?
i. Hurdle rates are too high.
ii. Rejection assumes the status quo will apply.
iii. There is often a high degree of uncertainty in cash flow forecasts.

Question

Quizplus · Accepted Answer

Traditional capital expenditure analysis faces several limitations, including the potential for overly high hurdle rates, the assumption that rejecting an investment means the status quo will continue without change, and the significant uncertainty often associated with forecasting future cash flows.

Which of the Following Are Limitations of Traditional Capital Expenditure