In the NPV method,errors in forecasting terminal disposal values are usually not crucial because the present value of these cash flows is small.

Name: In the NPV method,errors in forecasting terminal disposal values are usually not crucial because the present value of these cash flows is small.
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This is because the terminal disposal values occur at the end of the project's life, and when discounted back to the present value, their impact is significantly reduced due to the time value of money.

In the NPV Method,errors in Forecasting Terminal Disposal Values Are