One way to uncover forecasting errors in NPV estimates is by looking at:
I. Book values
II. Liquidating values
III. Market values

Question

Quizplus · Accepted Answer

The best choice for uncovering forecasting errors in NPV estimates is by examining market values. Book values and liquidating values may not accurately reflect current market conditions and may not capture the true value of a project. Market values, on the other hand, are based on current market conditions and provide a more accurate representation of the value of a project. Therefore, choice C, examining market values, is the best option.

One Way to Uncover Forecasting Errors in NPV Estimates Is