You have put together a set of cash ﬂow forecasts for a project and have found, on your ﬁrst
calculation, that the NPV is positive. You should try to assess the degree of forecasting risk that
exists with the project.

Question

Quizplus · Accepted Answer

It is important to assess the degree of forecasting risk that exists with the project even if the initial NPV calculation is positive. This will help in identifying and addressing any potential risks or uncertainties that could impact the future cash flows and ultimately the project's profitability.

You Have Put Together a Set of Cash ﬂOw Forecasts