Cash flows related to a proposed capital investment project are subject to what kind of risk?

Question

Quizplus · Accepted Answer

Cash flows related to a proposed capital investment project are subject to various risks such as economic risk (changes in market conditions or economic factors affecting the project's profitability), financial risk (instability in financial markets, interest rate changes, etc.), and political risk (changes in government regulations or policies impacting the project's viability). Therefore, all of these risks can affect the project's cash flows and should be taken into consideration while making investment decisions.

Cash Flows Related to a Proposed Capital Investment Project Are