1. It compels the decision maker to identify the variables which affect the cash flow forecasts.
This helps him in understanding the investment project in totality.
2. It indicates the critical variables for which additional information may be obtained. The decision maker can consider actions which may help in strengthening the "weak spots" in the project.
3. It helps to expose inappropriate forecasts and thus guides the decision maker to concentrate on relevant variables.
Kavungya answered the question on April 13, 2021 at 09:29
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