Risk analysis in capital budgeting

[remyanair141989]

hello all.!!
i need help in my accounts project ...topic is "RISK ANALYSIS IN CAPITAL BUDGETING"... m not able to understand it.....pls help me....i have searched a lot but didnt get anythng..so pls refer some site...pls

[ankitgokani]

welll my fav topic

first explain what is capital budgeting
imp of capital budgeting
types of methods
and den th risk involved in descions

What does “risk” mean in capital budgeting?
Risk relates to uncertainty about a project’s future profitability.

three types of risk are relevant in capital budgeting
Stand-alone risk
The project’s risk if it were the firm’s only asset and there were no share-holders.
Ignores both firm and shareholder diversification.
Measured by the ? or CV of NPV, IRR,
Corporate risk
Reflects the project’s effect on corporate earnings stability.
Market risk
Reflects the project’s effect on a well-diversified stock portfolio.