Because of improvements in forecasting techniques, estimating the cash flows associated with a project has become the easiest step in the capital budgeting process.

Question

Quizplus · Accepted Answer

While forecasting techniques have certainly improved, estimating cash flows is still a complex and challenging step in the capital budgeting process as it involves predicting future revenue and expenses with a level of uncertainty.

Because of Improvements in Forecasting Techniques, Estimating the Cash Flows