The expected cash flows for a project are fixed amounts that have zero variability in the projected values.

Question

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The expected cash flows for a project may have some degree of variability or uncertainty in their projected values. For example, changes in market conditions, inflation rates, or technological advancements can impact the future expected cash flows of a project. Therefore, it is important to consider the risks and uncertainties related to the cash flow projections when evaluating the feasibility and profitability of a project.

The Expected Cash Flows for a Project Are Fixed Amounts