Forecasting the future with accuracy is problematic in valuation; this creates
A) a need to adjust discount rates downwards.
B) a tendency to avoid valuation when buying capital assets.
C) a need to spend more on software to get it right.
D) problems in predicting future cash inflows from a project.

Question

Quizplus · Accepted Answer

Forecasting the future with accuracy is difficult, which can lead to problems in predicting future cash inflows from a project. This can make valuation challenging, but it does not necessarily require adjusting discount rates downwards or avoiding valuation altogether. Spending more on software may help with forecasting, but it is not the only solution and may not guarantee accuracy.

Forecasting the Future with Accuracy Is Problematic in Valuation; This