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Risk-adjusted cutoff rate (or Method of varying) For Risk And Uncertainty In Capital Budgeting

Risk-adjusted cutoff rate (or Method of varying) For Risk And Uncertainty In Capital Budgeting:

finance
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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 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: 5

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