The Greater the Uncertainty About a Project's Forecasted Cash Flows

question 56

True/False

The greater the uncertainty about a project's forecasted cash flows, the larger should be the discount rate applied to cash flows, other things being equal.

---

Definitions:

William McKinley

The 25th President of the United States, serving from 1897 until his assassination in 1901, noted for leading the nation during the Spanish-American War and promoting economic growth.

Cuban Uprising

Refers to any of the various rebellions or revolutions in Cuba, most notably the Cuban Revolution of 1959 which brought Fidel Castro to power.

USS Maine

An American naval ship whose explosion in Havana Harbor in 1898 led to the Spanish-American War, sparking a significant escalation in U.S. military involvement overseas.

President McKinley

The 25th President of the United States, William McKinley, served from 1897 until his assassination in 1901, and was known for leading the nation during the Spanish-American War.