Risk-adjusted cutoff rate (or Method of varying) For Risk And Uncertainty In Capital Budgeting:
This is one of the simplest method while calculating the risk in capital budgeting increase cut of rate or discount factor by certain percentage an account of risk.
If at at even a higher discount rate investment Y gives a higher net present value, investment Y should be preferred.
[Post Image Courtesy of DDPavumba at FreeDigitalPhotos.net]
This is one of the simplest method while calculating the risk in capital budgeting increase cut of rate or discount factor by certain percentage an account of risk.
If at at even a higher discount rate investment Y gives a higher net present value, investment Y should be preferred.
Risk-adjusted cutoff rate (or Method of varying) For Risk And Uncertainty In Capital Budgeting
Reviewed by Blog Editor
on
Monday, May 22, 2017
Rating:
No comments:
Do you have any reasonable comments for this post ? Please feel free to drop them below using the comment box. We will moderate and publish them as soon as possible. Cheers !