Estimating cash flows for a private firm is challenging because:

I. Some personal expenses may be reported as business expenses in private companies.
II. It is sometimes difficult to tell where salaries end and dividends begin in a private firm, since they both end up with the owner.
III. The accounting statements for private firms are often based upon different accounting standards than public firms, which operate under much tighter constraints on what to report and when to report.

Correct Answer: I, II and III