How do the net present value (NPV) simplifying assumptions about cash flow predictability differ from cash flow predictability in the real world? Simplifying assumptions assume that future cash flows can be predicted with certainty, when in reality they cannot be. Simplifying assumptions assume that future cash flows will be less than 12% higher than present cash flows, when in reality they will be 12% to 15% higher. Simplifying assumptions assume that future cash flows cannot be predicted with certainty, when in reality they can be. Simplifying assumptions assume that future cash flows will be 12% to 15% higher than present cash flows, when in reality they will be less than 12% higher