Capital expenditures are part of the analytical hierarchy process where the decision to buy is assessed at the cash flow level even if these are uneven. The capital risk and sensitivity of our decisions as a managerial accountant is based on an assessment of the cost of capital. 

• Discuss what basic capital budgeting technique(s) you would use to accurately assess cash flow when taxes are considered. Support your rationale.

Answer rating: 100% (QA)

THE different methods adopted for capital budgeting The traditional methods or non discount methods include Payback period and Accounting rate of return method The discounted cash flow method includes ... View the full answer