Managers who have an interest in project approval are likely to:
A)overstate cash inflows.
B)understate cash outflows.
C)overstate terminal values.
D)All of the above

Question

Quizplus · Accepted Answer

Managers who have an interest in project approval may use various tactics to make the project appear more appealing or profitable than it actually is. This may include overestimating cash inflows, underestimating cash outflows, and/or overstating terminal values. Therefore, all of the above options (A, B, and C) are likely choices for managers who want to get their project approved.

Managers Who Have an Interest in Project Approval Are Likely