BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Answer: (D) Increase the underlying money outpouring of the task. Explanation: floatation costs will be costs an organization brings about when it gives new stock. Floatation costs make new value cost more than the current value.

Detailed explanation-2: -Which of the following would be the result of including flotation costs in the analysis of a project? Explanation: Flotation costs are costs a company incurs when it issues new stock. Flotation costs make new equity cost more than existing equity.

Detailed explanation-3: -payback period. The payback period is concerned with the amount of time it takes for a company to recoup the amount invested for an investment. The method does not consider the time value of money in the calculation.

Detailed explanation-4: -The concept of risk can be incorporated in the capital budgeting process as highlighted below; Risk assessment; this is the initial stage. Risk can be assessed by use of scoring criteria that compare budget items. The budget items are broken into pieces and addressed from the highest potential impact item.

Detailed explanation-5: -The payback period disregards the time value of money and is determined by counting the number of years it takes to recover the funds invested. For example, if it takes five years to recover the cost of an investment, the payback period is five years.