What would your options be when faced with the demands of on imperial CEO who expects you to “make it work”? Brainstorm several options.
The process of capital budgeting based on calculating various decision measures from projected cash flows has been a part of the investment decision process for more than 40 years. This procedure for evaluating investment opportunities works well when cash flows can be estimated with certainty, but in real-world corporate practice, many investment decisions involve a high degree of uncertainly. The decision is even more complicated when the project under consideration is the acquisition of another company or part of another company.