Which of the Following Statements Is True

question 75

Multiple Choice

Which of the following statements is true?

• A) To help combat optimistic bias when estimating a project's cash flows,companies place responsibility for analyzing an investment proposal under an independent authority from the group proposing the project.
• B) Financial experts need to have a sense of what is reasonable when forecasting a potential project's profit margin and growth potential.
• C) Financial analysts need to be prepared to defend their assumptions for a potential project and explain why their estimates do not agree with those offered by the project's advocates.
• D) All of the above are true.
• E) Only (a)and (c)are true.