Select Page

Cash Flow Estimates

Cash Flow Estimates For Capital  budgeting cash flows have to he estimated. There are certain ingredients of cash flow streams. Tax Effect It has been already observed that cash flows to be considered for purposes of capital budgeting are net of taxes. Special...

Effect of Taxes

Effect of Taxes Finally, the incremental cash flows are adjusted for tax liability. In other words taxes paid are deducted from the cash flows to estimate the benefits arising out of the investment decision. To conclude the above discussion relating to the data...

Incremental Cash Flow

Incremental Cash Flow The second aspect of the data required for capital budgeting relates to the basis on which the relevant cash outflows and inflows associated with proposed capital expenditure are to be estimated. The widely prevalent practice is to adopt...