Which of the Following Estimation Errors Would Result in a Cash

question 3

Multiple Choice

Which of the following estimation errors would result in a cash flow forecast that would have been too low?

• A)Estimated depreciation expense was too low.
• B)Estimated growth rate was too high.
• C)Initial period (time = 1)cash flow forecast was too low.
• D)both A and B

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Definitions:

Realtor

A real estate professional who is a member of the National Association of Realtors and adheres to its code of ethics.

Agency Relationship

A fiduciary relationship where one party (the principal) grants another party (the agent) the authority to act on their behalf in transactions.

Property Owner

An individual or legal entity that holds legal title to and has the right to use, control, and dispose of real property or land.

Independent Contractor

One who works for, and receives payment from, an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.