Estimation Theory in Financial Accounting as It Applies to Valuing Intellectual Property Assets

The abandonment option under various capital budgeting models are discussed in this study to illustrate the notion that present value of cash flows is often improperly estimated financial utilizing decision analytics estimation theory as it applies accounting. In study, intellectual property rights and other intangible assets which not considered accounting processes utilized An investor/analyst misestimates flow resulting less-than-optimum decisions. This especially a problem when actions abandon for salvage similar decisions improve intangibles included process. last statement goal well well-founded analysis accomplish goal.