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Companies evaluating a new investment project sometimes rush headlong into an assessment of risks and returns of the project alone without fully understanding the sources

Companies evaluating a new investment project sometimes rush headlong into an assessment of risks and returns of the project alone without fully understanding the sources and magnitude of the risks they already face. 1.1 In reference to the statement provided, describe what a risk assessment entails, and discuss why it needs to be prioritised in evaluating new investment projects. (20 marks) 1.2 With reference to any investment construction project of your choice discuss the sources of risks. Make use of relevant examples for your response.

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