The Key Means of Defending Against Forecasting Risk Is To

question 69

Multiple Choice

The key means of defending against forecasting risk is to:

• A) rely primarily on the net present value method of analysis.
• B) increase the discount rate assigned to a project.
• C) shorten the life of a project.
• D) identify sources of value within a project.
• E) ignore any potential salvage value that might be realized.

---

Definitions:

Assets

are resources owned by a business, having economic value and expected to provide future benefits.

Cash

A form of liquid asset representing money in physical or digital form that can be readily used for transactions.

Services Rendered

Refers to the completion of work or the delivery of a service for which payment is due.

Credit

An accounting entry that either increases a liability or equity account or decreases an asset or expense account.