It is extremely difficult to estimate the revenues and costs associated with large complex projects that take several years to develop. This is why subjective judgement is recommended for such projects instead of cash flow analysis.

Question

Quizplus · Accepted Answer

The statement is incorrect. Cash flow analysis is still recommended for large complex projects, but it is important to acknowledge the limitations and uncertainties associated with long-term estimations. Subjective judgement can complement cash flow analysis and help to identify risks and opportunities that may not be captured through financial analysis alone.

It Is Extremely Difficult to Estimate the Revenues and Costs