2. Why does the process of generating forecasts of Future Financial Statements for a new product venture generally start with forecasting the Sales line? (more than one answer could be correct) Because Sales is the easiest line item to forecast in a new product venture Because many of the other business activities are determined based on forecasted volumes of sales Because Sales Revenues are the biggest numbers on the Income Statement Because Sales measures the protability of the product venture Because many + Because sales is 3. The discount rate we use in calculating the net present value of the expected future cash ows associated with the new product venture should: (more than one answer could be correct) Be lower for riskier ventures Be higher if we expect ination to be higher Reect the opportunity cost of using capital in our next best use Be higher if the initial startup costs of the venture are higher Ref +Be high Ref+Be high if we expect + Be higher if we