You Have Put Together a Set of Cash flOw Forecasts

question 394

True/False

You have put together a set of cash flow forecasts for a project and have found, on your first
calculation, that the NPV is positive. You should use scenario or sensitivity analysis to investigate
the project in greater detail.

---

Definitions:

Sacred

Something that is considered holy, divine, or of immense spiritual significance, often revered and protected.

Diffusion of Responsibility

A sociopsychological phenomenon where individuals in a group are less likely to take action or feel responsible for acting because the responsibility is perceived to be shared among all group members.

Bystander Effect

A phenomenon in which a person who witnesses another in need is less likely to help when there are other bystanders present to witness the event.

Bystander Effect

A phenomenon where individuals are less likely to offer help to a victim when other people are present.