What methods can be used for forecasting capital needs?

The correct answer highlights a comprehensive approach to forecasting capital needs by incorporating multiple quantitative methods. Historical trend analysis allows organizations to examine past capital expenditures and patterns, giving insight into future needs based on historical performance. Regression analysis further supports this by identifying relationships between various factors, enabling more accurate predictions based on those influences. Trend extrapolation looks at existing trends and extends them into the future, providing a data-driven basis for estimating future capital requirements.

This combination of techniques ensures a well-rounded analysis, leveraging both historical data and statistical methods for more reliable forecasts. Essentially, using these diverse methods helps mitigate the risks associated with relying solely on one type of analysis, thus enhancing the robustness of the forecasting process.