Open Access. Powered by Scholars. Published by Universities.®

Business Commons

Open Access. Powered by Scholars. Published by Universities.®

Finance

2005

School of Business: Faculty Publications and Other Works

Articles 1 - 1 of 1

Full-Text Articles in Business

How Risky Are Your Capital Expenditures?, Thomas Zeller, Brian Stanko Feb 2005

How Risky Are Your Capital Expenditures?, Thomas Zeller, Brian Stanko

School of Business: Faculty Publications and Other Works

The article discusses estimating the risks involved with capital expenditures. According to the Financial Accounting Standards Board (FASB) risk is built into the measurement system by evaluating each future cash flow estimate. This model builds risk into an analysis by weighting the possible range of cash flow estimates that may be applied in an investment decision.