2006-09-04 14:37:52 · 3 answers · asked by sheryl s 1 in Business & Finance ➔ Corporations
where is the rest of your question?
the net present value of a proposed project is a crap shoot at best, unless it's a building or a piece of real estate - if it's software, who knows what it will be worth.
2006-09-04 14:43:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Some are accurate and some arent. Its as much art as it is science sometimes. The hard part is finding the discount rate for the cash flows. If they have a good rate of return on investment and good cash flow then their capital budgeting techniques must be successful.
2006-09-04 21:52:10 · answer #2 · answered by jeff410 7 · 0⤊ 0⤋
It all depends on how realistic a firm is with it sets its assumptions. If you just pull a number out of thin air (or any other place) then you might get it right, you might get it wrong.
2006-09-05 00:45:34 · answer #3 · answered by Fermat 4 · 0⤊ 0⤋