Forecasting risk is important for financial managers because

Select one:

a. the firm may not be able to correctly project its future financing costs without considering risk.

b. forecasts by industry analysts may not agree with the firms forecasts of its future revenues.

c. strategic options cannot be included in the capital budgeting decision criteria without considering risk.

d. the investment decision process should aim to match projected cash flows with actual cash flows.

e. overly optimistic estimation of future cash flows may lead to incorrect capital budgeting decisions.