Why must risk, uncertainty, and sensitivity be included as factors in the evaluation of proposed capital expenditures?
can someone answer this? pls help me
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Why must risk, uncertainty, and sensitivity be included as factors in the evaluation of proposed capital expenditures?
can someone answer this? pls help me
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Answer:
Risk and uncertainty are quite inherent in capital budgeting decisions. This is so because investment decisions and capital budgeting are actions of today which bear fruits in future which is unforeseen.