Estimating cash flows is the _____ and error-prone part of capital budgeting.
A)most difficult
B)least difficult
C)most likely
D)least likely

Question

Quizplus · Accepted Answer

Estimating cash flows involves predicting future revenue and expenses, which is inherently uncertain and subject to error. It requires analyzing market trends, competition, and other factors that can be difficult to predict accurately. Therefore, it is considered the most difficult and error-prone part of capital budgeting.

Estimating Cash Flows Is the _____ and Error-Prone Part of Capital