True or False A financial manager must be certain about future cash flows when making investment...

True or False

A financial manager must be certain about future cash flows when making investment decisions.

Expert Solution

Future cash flows can never be absolutely predicted so financial manager will never be certain about the future cash flows because it is not dependent upon his prediction but it is also dependent upon the macro and the micro risk so he must not be certain about the cash flows as future cash flow can never be predicted with certainity.

"Must"reflects to the absolute certainty and cash flow cannot be predicted with the absolute certainty so the given statement is false.

The given statement is FALSE

jeff jeffy answered 2 years ago

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