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How Risky Are Your Capital Expenditures?, Thomas Zeller, Brian Stanko
How Risky Are Your Capital Expenditures?, Thomas Zeller, Brian Stanko
School of Business: Faculty Publications and Other Works
The article discusses estimating the risks involved with capital expenditures. According to the Financial Accounting Standards Board (FASB) risk is built into the measurement system by evaluating each future cash flow estimate. This model builds risk into an analysis by weighting the possible range of cash flow estimates that may be applied in an investment decision.