When evaluating a potential acquisition's future, why penalize the prospect by deducting the capital expenditures that will

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When evaluating a potential acquisition's future, why penalize the prospect by deducting the capital expenditures that will need to be made when performing a cash-flow analysis? Are not future earnings what really matter?

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Fundamentals Of Financial Management

ISBN: 9780273713630

13th Revised Edition

Authors: James Van Horne, John Wachowicz

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Question Posted: Dec 07, 2015 05:56 AM

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When evaluating a potential acquisition's future, why penalize the prospect by deducting the capital expenditures that will

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Capital expenditures are deducted in a cashflow analysis because one should be concern...View the full answer

Fundamentals Of Financial Management

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