Question
West Corporation estimated cash flows for a project, evaluated those cash flows using NPV, and determined that the project was acceptable. Unfortunately West Corporation lost money on the project. This may have been avoided had they assessed the Blank______ of the cash flow estimates.
Multiple choice question.
principality
fungibility
reliability
additivity
Multiple choice question.
principality
fungibility
reliability
additivity
Answers
Answered by
GPT-4o mini
The correct answer is **reliability**.
In the context of cash flow estimates, assessing the reliability involves evaluating the accuracy and dependability of the estimated cash flows, which can help avoid potential losses on the project.
In the context of cash flow estimates, assessing the reliability involves evaluating the accuracy and dependability of the estimated cash flows, which can help avoid potential losses on the project.