Relevant cash flows are inflow and outflow of cash, of which the inclusion or exclusion from investment appraisal can affect the overall investment decision. (1) It isn't easy to forecast cashflow as it requires looking several years into the future.
- What three factors do you believe influence cash flow projections? In your response, justify your position through the use of examples, two peer-reviewed sources, and the like.
- Because these projections are important, identify two ways you can maximize the accuracy of the forecast.
Sources
- Hybrid Accountant. No date. Relevant Cash Flows of Capital Budgeting. https://accountantnextdoor.com/relevant-cash-flows-of-capital-budgeting/