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

Improvements in forecasting techniques may make it easier to estimate cash flows, but it is still a complex and critically important step in the capital budgeting process. Factors such as changing market conditions or unexpected costs can impact cash flow estimates, making it important for companies to carefully consider and review their projections.

Because of Improvements in Forecasting Techniques, Estimating the Cash Flows