Final answer:
When developing cash flows for capital budgeting, it is easy to overlook important items because of the complexity and uncertainty involved in forecasting. Details like maintenance costs and potential regulatory changes could be inadvertently missed.
Step-by-step explanation:
When developing cash flows for capital budgeting, it is c) Easy to overlook important items. Capital budgeting is a critical aspect of a company's strategic planning, involving the evaluation of potential major investments or expenditures. These cash flows are projections that can be affected by a number of different variables and assumptions about the future. Due to the complexity and uncertainty involved in predicting future events, important items such as maintenance costs, changes in working capital, inflation, taxes, and potential regulatory changes may unintentionally be overlooked or underestimated. It's crucial for those preparing capital budgeting analyses to be thorough and consider all possible influences on cash flows to avoid such oversights.