Stand alone risk in Capital Budgeting
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Can you please explain Stand alone risk in Capital Budgeting (at least 100 words)© BrainMass Inc. brainmass.com May 24, 2023, 1:31 pm ad1c9bdddf
Estimating the cash flows of a project is the most difficult part of capital budgeting. Since we are dealing with cash flows in the future, there is a lot of uncertainty involved with estimating future cash flows. One of the components of a project's risk is Stand-alone risk. It is the risk of the project as a separate entity. Stand-alone risk can be measured using the standard deviation and coefficient of variation ...