Cash Flow Estimation Practices of Large Firms

SEvaluating capital investment decisions generally requires two types of information-estimates of relevant cash flows and the appropriate discount rate(s). There is evidence in the academic literature that previous works have heavily concentrated on developing and refining quantitative techniques for measuring the appropriate discount rate, incorporating risk in the decision process, and employing logical procedures in the capital expenditure decision-making process. In their synthesis of past capital budgeting studes, Scott and