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Guide to Capital Budgeting & Its Steps | Zell EducationDistinguish between Capital Budget and Revenue Budget. Explain the components of both these Budgets. (150 Words 10 Marks) - BlogWhat is Capital Expenditure (CapEx): Its Examples, Importance and CalculationWhich of the following is not a capital budgeting decision?Expansion program.Merger.Inventory level.Replacement of an asset.A Probability of Cash flows B Certainty of Cash flows D Variability of Cash flows
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Risk is the probability of damage, loss or threat. Risk in capital budgeting implies that the decision maker knows the probability of cash flows. Therefore, risk in capital budgeting means uncertainty of cash flows.
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