Will the NPV amount determined in the capital budgeting process be the
QUESTION
Will the NPV amount determined in the capital budgeting process be the same amount as that which actually occurs after a project is undertaken? Why or why not?
calculated before the project is undertaken can be equal to the Net Present Value after the project has been undertaken. However it is difficult to estimate the future cash flows with cent percent accuracy as a result of which the actual Net Present Value of the project after the occurrence of the project is usually different from the Net Present Value that is based on the estimated amounts.
ANSWER:
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