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Chapter 13 introduces risk as a capital budgeting factor. As we build on capital budgeting from chapter 12, why is it absolutely necessary to introduce

Chapter 13 introduces risk as a capital budgeting factor. As we build on capital budgeting from chapter 12, why is it absolutely necessary to introduce and use risk in our project/investment analysis? Why not just use the weighted average cost of capital as we did in chapter 12? Last, how does the introduction of risk potentially change our decision about a project/investment?

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