The Important Point(s) to Remember While Estimating the Cash Flows

question 10

Multiple Choice

The Important point(s) to remember while estimating the cash flows of a project

• A)is that only cash flow is relevant.
• B)are cash flow is relevant and always estimate cash flows on an incremental basis.
• C)are to always estimate cash flows on an incremental basis and to be consistent in the treatment of inflation.
• D)are cash flow is relevant, always estimate cash flows on an incremental basis, and be consistent in the treatment of inflation.

---

Definitions:

Probability

A measure of the likelihood of a particular event or outcome occurring, expressed on a scale from 0 (impossibility) to 1 (certainty).

Results

Outcomes or data obtained from experiments, studies, or any process designed to gather information.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points from their mean value.

Mean

The arithmetic average of a set of values, or distribution.