19
Capital Budgeting Under Risk and Uncertainty
“The only certainty in the world is ‘change’.”
Anonymous
LEARNING OBJECTIVES
After reading the chapter, you will be able to:
Understand the measurement of risk.
Discuss the absolute measures of standalone investments and projects.
Understand the methods used to quantify risk in capital budgeting.
Look at the various risk-evaluation approaches in capital budgeting.
FINANCE IN PRACTICE
The National Highway Authority of India (NHAI) recently faced difficulty in implementing road-project development in India. In order to encourage quick development in road-development projects in India, the National Highway Development Programme (NHDP) involved the private sector in the projects through public–private ...
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