Estimating costs and future cash flows

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• New York Times potential acquisition target for Google.

  This fact must be considered by Google in estimating its investment and cash flows.

• A company is considering a proposed new plant that would

  When estimating the project's operating cash flows, it is important to include both opportunity costs and sunk costs, but the firm should ignore the cash flow effects of externalities since they are accounted for in the discounting process. 4.

• Wal-Mart: Cash Flow Estimate

  This fact must be considered by Wal-Mart in estimating its investment and cash flows.

• Capital Budgeting decisions for drug manufacturing company

  Its future operating cash flows (cost to run, repair, operate, and service) would be "inflows" in any model that compared the "status quo" to a new option because these costs would go away with a new machine.

• Capital Budgeting & Biases: Eliminating Manager Biases

  In estimating future cash flows, making use of marketing research may reduce biases.

• Valuation and Leverage and Estimating Value

  Since the cost of capital affects what projects to accept, and each of this projects have their own sets of cash flows, then the set of cash flows that we discount is also affected.

• Pros and cons of financial tools

  It is computed by estimating the future cash flows that may result from the project in a given period (e.g. 1 year).

• Stand alone risk in Capital Budgeting

  Since we are dealing with cash flows in the future, there is a lot of uncertainty involved with estimating future cash flows. One of the components of a project's risk is Stand-alone risk. It is the risk of the project as a separate entity.

• Impact of Discounting Future Cash Flows for Impairment

  611945 Impact of Discounting Future Cash Flows for Impairment Calculating the true impairment value of an asset involves estimating the fair value of it.