Purchase Solution

Risks and challenges using a conservative approach

Not what you're looking for?

Ask Custom Question

What are the risks and challenges with using a conservative approach?

Purchase this Solution

Solution Summary

Your response is 200 words and explains the risks and the challenges of being conservative in capital budgeting.

Solution Preview

While it may seem to make sense to be somewhat conservative, you run the risk of missing out on good projects. You will miss an opportunity if you use lower expected future returns or high discount rates. Most projects have a range of potential outcomes. You might think that you can earn between $20,000 and $40,000 ...

Solution provided by:
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution


Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.