Project Risk Relevant in Capital Budgeting Decision
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.
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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 |