A. Increasing estimates of future expected cash flows arbitrarily is not an acceptable method of addressing uncertainty in the capital budgeting process.

B. A company adjusts for the uncertainty inherent in its estimates by increasing the required rate of return used to discount the future expected cash flows. A higher discount rate will require higher expected future cash flows in order for the investment to be acceptable. As a result, fewer investments will be acceptable.

C. The use of accelerated depreciation is not a technique used to address uncertainty in capital budgeting.

D. Although the preparation of a direct analysis of the probability of outcomes may be used to address uncertainty, it is not a simple method, and this question asks for a simple method.