I don 't do any capital budgeting for buying my machines They typically last for more than 10 years If I have to do capital budgeting, I need to estimate my future cash inflows and outflows for the next 10 years, which is very difficult to do I don 't have time for all that I know that my company ...

There is nothing wrong with this argument If the company is consistently maki ...

I don't do any capital budgeting for buying my machines. They typically last for more than 10

Question:

"I don't do any for buying my machines. They typically last for more than 10 years. If I have to do I need to estimate my future cash inflows and outflows for the next 10 years, which is very difficult to do. I don't have time for all that. I know that my company is making money now, and if I need to buy a new machine and replace an existing machine, I just do it." How would you respond to this argument?

Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...