The most important and difficult task of estimating cash flows for an established business is
A) computing historic ratios
B) computing historic rolling averages
C) identifying values that will change during the forecast period
D) A and B
E) A, B, and C

Question

Quizplus · Accepted Answer

Identifying values that will change during the forecast period is the most important and difficult task because it requires understanding both the internal and external factors that could affect future cash flows, which is more complex than simply analyzing past data.

The Most Important and Difficult Task of Estimating Cash Flows