Project Risk Relevant in Capital Budgeting Decision

Project Risk.docx 

Describe the three types of project risks and detail the situation in which each type is most relevant when making a capital budgeting decision. Also include the effect of correlation.

Next, compare and contrast cash accounting methodology and accrual accounting methodology in order to illustrate how each works best for different types of companies.

Submission Details:

  • Present your analysis as a 2- to 3-page report in a Microsoft Word document formatted in APA style.
  • On a separate page, cite all sources using APA format.
  • Name your document SU_MHC6305_W5_A2_LastName_FirstInitial.doc.
  • By Tuesday, June 23, 2015, submit your assignment to the W5 Assignment 2 Dropbox.

Assignment 2 Grading Criteria

Maximum Points

Described the three types of project risks.

50

Covered the relevance of the project risk examples to budgeting decisions.

46

Explained the importance of correlation among project risk measures.

46

Compared cash and accrual accounting methodologies.

50

Illustrated how cash and accrual methodologies work best.

50

Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and APA style attribution of sources; displayed accurate spelling, grammar, and punctuation.

8

Total:

250

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