Estimating cash flows for capital budgeting projects

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The process of estimating cash flows for capital budgeting projects is very subjective and relies upon the discretion of those involved. Given the nature of this process, what ethical dilemmas may present themselves to both those involved in the estimation process and members of management who are overseeing and/or making decisions based upon the estimated cash flows? What motivation would various parties have to either inflate or deflate cash inflow or outflow information?

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Reference no: EM131499635

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