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  3. risk in capital budgeting increases as: a-certain

Risk in Capital budgeting increases as: a-Certainty of Cash flows increase b-Uncertainty of Cash...

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Question

Accounting

Risk in Capital budgeting increases as:

a-Certainty of Cash flows increase

b-Uncertainty of Cash flows increase

c-Probability of Cash flows increase

d-Variability of Cash flows increase

What is the main disadvantage of the expected value method of investment appraisal?

a-Calculates the probability of the different outcomes to be quantified

b-Ignores the investors attitude towards risk.

c-Recognize the presence of several possible outcomes

d-Calculations are simple

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