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1 June, 00:43

Happy lion is considering investing ina project whose eisj is greater than the firm's current risk level based on

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  1. 1 June, 01:09
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    The things that decision maker should consider in this situation is to Increase the cost of capital used to evaluate the project to reflect its higher-than-average risk.

    In budgetinng process, the decision maker need to make sure the cost that potentially incurred for the company because of the higher risk.

    If, after including all that the potential benefit still outweight the potential risk, then they could move forward with the investment.
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