Question text

Which of the following statements is true regarding the analysis of a firm's current projects?

The actual cash flows and project cost of capital can be expected to differ from those originally projected.

When a firm wants to analyze all of its investment projects, it can be less cumbersome to analyze the portfolio of projects than each project separately.

Interpreting the analysis of existing projects is identical to analyzing future projects.

Select one:

A. I only

B. I and II only

C. II and III only

D. I, II, and III