Process to avoid overly optimistic cash flow forecasts

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Reference no: EM131454330

Most analysts (as well as corporate executives) are overconfident in their abilities and tend to be optimistic about their projections. How can you, as an analyst, try to avoid forecasting cash flows that are too optimistic? Since companies know that there are just as many average or below average analysts as there are above-average analysts, what steps or processes can they put in place during the evaluation process to avoid overly optimistic cash flow forecasts?

Reference no: EM131454330

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