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Financial Management - Capital Budgeting – A Conceptual Framework

Precautions for Uncertainties - Risk Analysis In Capital Budgeting

   Posted On :  20.06.2018 12:14 am

Precautionary measures to meet uncertainty can take one or all the three following distinct forms:

Precautions for Uncertainties
 
Precautionary measures to meet uncertainty can take one or all the three following distinct forms:

1. Measures can be adopted to reduce the variability or dispersion of income

2. Measures can be adopted to prevent profit from falling below some minimum level

3. Measures can be adopted to increase the firm’s ability to withstand unfavourable economic outcomes.
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