Asked by Veronica Burrs on May 17, 2024

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For which of the following project types is cash flow estimation most difficult?

A) New Venture
B) Replacement
C) Expansion
D) New Market

New Venture

An enterprise that is newly established, focusing on addressing a market demand by offering an innovative product, service, or platform.

Expansion

The process of a business enlarging its operations, typically through increased production capabilities, market reach, or product lines.

New Market

An emerging sector or industry where a company can expand its operations or products to generate growth.

  • Understand the challenges and uncertainties in estimating future cash flows for various project types.
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Vaamitha VarathalingamMay 19, 2024
Final Answer :
A
Explanation :
Cash flow estimation is most difficult for new ventures because they lack historical data and have uncertain market conditions, making it challenging to predict revenues, costs, and profitability accurately.