Tag Archives | Handling

How to Handle Risk Factor of Capital Budgeting ?

Here are some of the techniques which can handle the risk factor of capital budgeting:- 1. Risk-Adjusted Discount Rate 2. Certainty-Equivalent 3. Quantitative Techniques 4. Probability Assignment 5. Standard Deviation 6. Co-Efficient of Variation 7. Sensitivity Analysis 8. Decision Trees. Technique # 1. Risk-Adjusted Discount Rate: Generally, against risk the businessman requires a premium over […]

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