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    Risks and challenges using a conservative approach

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    What are the risks and challenges with using a conservative approach?

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    While it may seem to make sense to be somewhat conservative, you run the risk of missing out on good projects. You will miss an opportunity if you use lower expected future returns or high discount rates. Most projects have a range of potential outcomes. You might think that you can earn between $20,000 and $40,000 ...

    Solution Summary

    Your response is 200 words and explains the risks and the challenges of being conservative in capital budgeting.