Forecasting requires a lot of judgment to ensure forecasted statements are as realistic as possible. Discuss some of the errors that are often associated with preparing forecasted financial statements. Also include a discussion of ways that management can improve forecasted numbers for more relevant decision$-$making.

Based on your discussion, consider the following scenario: Audio Partners is investing $$2$ million into research and design. This investment is expected to deliver marketable products in a $24-$month period. The investment is necessary to maintain market viability and to take a first mover advantage in the market. Estimated cash flows in two years from this investment are $$500,000$ per year. Why should $($or shouldn$$t$)$ Audio Partners make the investment?