{"id":747,"date":"2018-04-19T22:51:10","date_gmt":"2018-04-19T22:51:10","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/?post_type=chapter&p=747"},"modified":"2024-04-29T17:40:08","modified_gmt":"2024-04-29T17:40:08","slug":"introduction-to-risk-and-capital-budgeting","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-accountingformanagers\/chapter\/introduction-to-risk-and-capital-budgeting\/","title":{"raw":"Introduction to Risk and Capital Budgeting","rendered":"Introduction to Risk and Capital Budgeting"},"content":{"raw":"

What you'll learn to do:\u00a0Describe different ways to identify and measure potential risk of investments<\/h2>\r\n\"A\r\n\r\nThere are risks in all investments. When we invest in a capital improvement, piece of equipment or project there are many ways it may not work out in the way we thought it might! Risk is the potential that a chosen action or activity (including the choice of inaction) will lead to a loss (an undesirable outcome). The notion implies that a choice having an influence on the outcome exists (or existed). Potential losses themselves may also be called \u201crisks.\u201d\r\n\r\nA variety of risks exist in any capital budgeting process; thus,\u00a0risk analysis is incredibly important when companies make capital budgeting decisions.","rendered":"

What you’ll learn to do:\u00a0Describe different ways to identify and measure potential risk of investments<\/h2>\n

\"A<\/p>\n

There are risks in all investments. When we invest in a capital improvement, piece of equipment or project there are many ways it may not work out in the way we thought it might! Risk is the potential that a chosen action or activity (including the choice of inaction) will lead to a loss (an undesirable outcome). The notion implies that a choice having an influence on the outcome exists (or existed). Potential losses themselves may also be called \u201crisks.\u201d<\/p>\n

A variety of risks exist in any capital budgeting process; thus,\u00a0risk analysis is incredibly important when companies make capital budgeting decisions.<\/p>\n\n\t\t\t

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Candela Citations<\/h3>\n\t\t\t\t\t
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CC licensed content, Original<\/div>