QUESTION 5 A. Capital budgeting analysis involves the use of many estimates. Required: For each of the following estimation errors, state whether the net present value of the project will be too high or too low because of the error in estimates: The initial investment is too high. NO Effect The cost of capital (discount rate) is too low. The cash flows from the project are too high. C. The number of years over which the project will generate cash flows is too low. B. Too Low CToo High