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Financial Management - Capital Budgeting – A Conceptual Framework

Types of Uncertainties - Risk Analysis In Capital Budgeting

   Posted On :  20.06.2018 12:11 am

Several types of uncertainties are important to the producer, as he formulates plans and designs courses of actions for procuring resources at the present time for a product forthcoming at a future date.

Types of Uncertainties
 
Several types of uncertainties are important to the producer, as he formulates plans and designs courses of actions for procuring resources at the present time for a product forthcoming at a future date. The types of uncertainties can be classified as 

(i) Price uncertainty 

(ii) Production uncertainty 

(iii) Production technology uncertainty 

(iv) Political uncertainty 

(v) Personal uncertainty; and 

(vi) Peoples’ uncertainty.

 

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