PLEASE READ FOR YOUR CONSIDERATION QUESTIONS ON CASH FLOW AND ANSWER

544 Gapenski's Healthcare In prav For Your Consideration Principles of Cash Flow Estimation To emphasize the difficulties involved in capital budgeting cash flow estimation, one manager with a good sense of humor developed the follow- ing principles of cash flow estimation: ble to foreca with and w the actual the cash flo evaluated. as to whet evant to t fall back . It is difficult to forecast cash flows, especially those that occur in the future. Those who live by the crystal ball soon learn how to eat ground glass. The moment someone forecasts cash flows, he knows that they are wrong-he just doesn't know by how much and in what direction. If someone makes a correct forecast, never let the boss forget. An expert in cash flow estimation is someone who has been right at least once. Cash FLC Income Accoun in accc accoun respect examp (which (whic healt tions What do you think? Is there any truth in these "principles"? Can you think of any other principles to add to this list? payn mor the not cash flows), but it does deduct depreci