Project abandonment
ID:CVPAB
Video Overview
Capital budgeting decisions are based on forecasts or estimates of what the future cash flows for a particular asset will be. Once the decision has been made to invest in an asset, the decision needs to be regularly appraised as the actual cash flows can vary from the forecasts on which the decision to invest was based on. Throughout the life of the project, management must regularly check that it is still viable or if abandoning the project would be more beneficial. In this tutorial, we will focus on project abandonment.
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