Which one of the following is most likely the reason why many projects fail to earn their projected rates of return?
A) Rapidly rising inflation
B) Delays in obtaining contracts and permits
C) Lack of raw materials
D)Forecasting bias by the sponsoring manager

Question

Quizplus · Accepted Answer

Forecasting bias by the sponsoring manager is often the primary reason why projects fail to achieve their projected rates of return. Managers may overestimate the benefits and underestimate the costs of the project, leading to misleading financial projections. This can lead to poor decision-making and inadequate resource allocation, ultimately resulting in project failure. Rapidly rising inflation, delays in obtaining contracts and permits, and lack of raw materials can also contribute to project failure, but they are less likely to be the primary reason.

Which One of the Following Is Most Likely the Reason