The methods of handling risk in capital budgeting are:
Use of risk-adjusted discounted rate
Certainty equivalent coefficient
Simulation
Sensitivity analysis
Decision trees
Expected monetary value (EMV)
approach Payback period method.
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The methods of handling risk in capital budgeting are:
Use of risk-adjusted discounted rate
Certainty equivalent coefficient
Simulation
Sensitivity analysis
Decision trees
Expected monetary value (EMV)
approach Payback period method.