Expected cash flows are crucial in capital budgeting as they provide an estimate of the returns a company can expect from an investment. They are used in calculating key metrics like the Internal Rate of Return (IRR) and Net Present Value (NPV), which help in comparing different investment opportunities and making informed decisions. In the absence of expected cash flows, it would be challenging to assess the profitability or viability of a project.
Are you looking to determine which investment opportunities are best for your company, especially wh...
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