A numerical treatment for the prediction of cavitating flows is presented and assessed. The algorithm uses the preconditioned multiphase Euler equations with appropriate mass transfer terms. A central difference finite volume scheme with suitable dissipation terms to account for density jumps across the cavity interface is shown to yield an effective method for solving the multiphase Euler equations. The Euler equations are utilized herein for the cavitation modeling, because some certain characteristics of cavitating flows can be obtained using the solution of this system of equations with relative low computational effort. In addition, the Euler equations are appropriate for the assessment of the numerical method used, because of the sensitivity of the solution to the numerical instabilities. For this reason, a sensitivity study is conducted to evaluate the effects of various parameters, such as numerical dissipation coefficients and grid size, on the accuracy and performance of the solution. The computations are performed for steady cavitating flows around the NACA 0012 and NACA 66 (MOD) hydrofoils and also an axisymmetric hemispherical fore-body under different conditions and the results are compared with the available numerical and experimental data. The solution procedure presented is shown to be accurate and efficient for predicting steady sheet- and super-cavitation for 2D/axisymmetric geometries.