Especially for projects with long lives, estimation of revenues (or benefits), costs, and cash flows is a difficult task principally because of:
A) The lack of good data.
B) Uncertainty about future events.
C) The large dollar amounts involved.
D) Income tax effects.
E) Lack of available forecasting tools.

Question

Quizplus · Accepted Answer

Estimating revenues, costs, and cash flows for long-term projects involves predicting future events and market conditions, which is inherently uncertain. Even with good data, it is impossible to accurately predict how the future will unfold. Therefore, uncertainty about future events is the primary reason why these projections are difficult to make.

Especially for Projects with Long Lives, Estimation of Revenues (Or