Chapter Overview—Where Are We Headed?
This chapter presents a discussion of the following issues related to the capital-budgeting
process: the role of accounting in the capital-budgeting process; the identification of relevant
financial information for the analysis of capital-expenditure projects; the use of discounted
cash flow (DCF) models for making capital-budgeting decisions; handling uncertainties in
the decision-making process; the use of non-DCF decision models; and, selected behavioral
issues. Some advanced issues related to the use of DCF decision models are covered in
Appendix B.