Question

Risk in capital budgeting implies that the decision-maker knows___________of the cash flows.(a) variability,(b)probability,(c) certainty,(d) none of the above

Answer 1

Answer:Risk in capital budgeting implies that the decision-maker knows___________of the cash flows.

Explanation:A

Answer 2

Concept Introduction: Risk is the uncertainty.

Explanation:

We have been Given: Risk in Capital Budgeting implies that the decision-maker knows _________ of the cash flows.

1. Variability
2. Probability
3. Certainty
4. None of the Above

We have to Find: Fill in the blank with correct option.

Risk means the uncertainty in the situation. Therefore the correct option is Certainty.

Final Answer: Risk in Captial budgeting implies that the decision maker knows Certainty of the cash flows.

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