Asked by Jillian Hearne on Jun 19, 2024
Verified
Initial investment is generally least subject to forecasting risk.
Forecasting Risk
The possibility of error in projecting future values such as revenues, costs, or stock prices, due to uncertainty about future events.
Initial Investment
Refers to the initial capital outlay or amount of money invested to start a project or investment.
- Identify the significance of cash flow forecasting and related risks in assessing a project.
Verified Answer
NP
Nadya PolevaiaJun 24, 2024
Final Answer :
False
Explanation :
Initial investment costs are often subject to significant forecasting risk due to potential overruns, changes in project scope, and unforeseen expenses.
Learning Objectives
- Identify the significance of cash flow forecasting and related risks in assessing a project.