Some capital-budgeting choices require managers to decide between upgrading high-technology research equipment and not upgrading. How would financial mangers at a Pharmaceutical, a drug manufacturer, use discounted-cash-flow models in their decision-making process? Be sure to address impact not replacing the equipment has on future operating cash flows used in the model.© BrainMass Inc. brainmass.com March 4, 2021, 8:18 pm ad1c9bdddf
The financial managers at Pharmaceutical might use discounted-cash-flow models such as the net present value (NPV) model to make capital-budgeting decisions. Considering the time value of money in any decision where the project's impact extends beyond a year is important to the ...