Professional Custom Accounting papers: In terms of capital budgeting, explain the difference between risk and uncertainty.
Describe the capital asset pricing model (CAPM) and how it is used in capital budgeting decisions.
You win the $20 million state lottery, and you have a choice of taking an amount of money per year for the next 20 years or a flat payment now. The flat payment that the state offers you is $9.82 million.
What discount rate is the state using?
Should you take the money or the annuity?
In terms of capital budgeting, explain the difference between risk and uncertainty.
