Cash Flows Estimation for Capex
Abstract
As the capital investment decisions must be made now, not later, they are based on ‘cash-flow concepts’ as opposed to profit-based concepts. The decision-making process for capital investments is driven by cash flows. When the investment is made in a project, it guides the management for future orientation. Consequently, the accuracy with which cash flows are computed determines whether an investment decision is successful or unsuccessful. Understanding the procedure for calculating cash flows is essential when making capital investment decisions.
Fields of Study & Subjects
Capital Investment and Risk Analysis
Financial Reporting and Valuation Research
Financial Analysis and Corporate Governance
Publication details
- Journal / source
- Routledge eBooks
- Pages
- 33–40
- Publication date
- 26 February 2026
- Language
- EN
- Document type
- Book chapter