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In: Finance

When engaging in capital budgeting projects, what types of risk may exist? What are some techniques...

When engaging in capital budgeting projects, what types of risk may exist? What are some techniques you could use to evaluate and/or mitigate those risks.

Solutions

Expert Solution

Various types of risks which should be taken into account when considering capital budgeting includes:

  • Corporate risk
  • International risk (including currency risk)
  • Industry-specific risk
  • Market risk
  • Stand-alone risk
  • Project-specific risk


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