Decision time: discount for cash?
13 September 2012
To buy or not to buy? Discounted cash flows have the answer!
Unit 6, Recording and Evaluating Costs and Revenues, requires some understanding of decision making tools. This article concentrates on long-term decisions, where a sizeable capital investment is expected to yield a number of cash benefits in future years.
For example, suppose a new machine requires an immediate outlay of £400,000, but will improve production...