Class 28 30 (Risk Analysis In Capital Budgeting)

Risk analysis in capital budgeting Taken from Financial Management (Prasanna Chandra)

Sources of risk ,[object Object],[object Object],[object Object],[object Object],[object Object]

Perspectives of risk ,[object Object],[object Object],[object Object],[object Object]

1. Sensitivity analysis or ‘what if’ analysis

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object]

2. Scenario analysis ,[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

3. Decision tree Approach ,[object Object],[object Object],[object Object]

Incorporating Project Risk into Capital Budgeting Decisions ,[object Object]

1. Risk adjusted discount rate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

2. Certainty equivalent method ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Σ - I

Class 28 30 (Risk Analysis In Capital Budgeting)

Recommended

Recommended

More Related Content

What's hot

What's hot (18)

Viewers also liked

Viewers also liked (12)

Similar to Class 28 30 (Risk Analysis In Capital Budgeting)

Similar to Class 28 30 (Risk Analysis In Capital Budgeting) (20)

Recently uploaded

Recently uploaded (20)

Class 28 30 (Risk Analysis In Capital Budgeting)