The article discusses estimating the risks involved with capital expenditures. According to the Financial Accounting Standards Board (FASB) risk is built into the measurement system by evaluating each future cash flow estimate. This model builds risk into an analysis by weighting the possible range of cash flow estimates that may be applied in an investment decision.
Zeller, T and B Stanko. "How Risky Are Your Capital Expenditures?" Strategic Finance 86(8), 2005.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
© Institute of Management Accounts, 2005.