What are the risks and uncertainty related to capital budgeting?© BrainMass Inc. brainmass.com June 3, 2020, 11:04 pm ad1c9bdddf
What are the Risks and Uncertainty Related to Capital Budgeting?
For understanding this in detail, let us know the basic capital budgeting steps (financingcp, 2009):
1) Identify potential projects
2) Evaluate and compare projects
For this one has to do the technical, organizational, regulatory, and financial evaluation
3) Select project(s) to implement
Financial evaluation and comparison of the project:
As per financingcp, the required rate of return has 3 elements:
a) Basic return - pure ...
Response discusses risks and uncertainty related to capital budgeting.