In a survey of large companies, financial managers indicate that “The most accurate cash flow estimates are reported to be the initial outlay estimates, and the least accurate element of cash flow estimates is the annual operating cash flows.” (Moyer, et al., 2018). Future cash flow estimates are, by nature, an estimate and are subject to assumptions and human bias. In this discussion forum, you will explore the impact of the variability in estimates on capital budgeting decisions.
For this discussion forum, refer to the Expansion Project PopFizz Soda Company Scenario Download Expansion Project PopFizz Soda Company Scenario.