Capital budgeting is risky because

Capital budgeting is risky because:

multiple choice
the outcome is certain
the decision is difficult to reverse Correct
small amounts of money are involved
the investment is short-term

Explanation
Knowledge Check 01

A capital budgeting decision is risky because: 1. The outcome is uncertain; 2. Large amounts of money are usually involved; 3. The investment involves a long-term commitment; and 4. The decision could be difficult or impossible to reverse.

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