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10.5Describe the qualitative approach to risk assessment. Why does this approach, which does not reply on numerical data, work? 10. 6How is project risk incorporated

10.5Describe the qualitative approach to risk assessment. Why does this approach, which does not reply on numerical data, work?

10. 6How is project risk incorporated into the capital investment decision?

10.7What is the difference between corporate cost of capital and a project cost of capital?

10.8What is meant by the term capital rationing? From purely financial standpoint, what is the best capital budget under capital rationing?

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