In Capital Budgeting, Risk Is the Degree of Variability of Cash

question 33

True/False

In capital budgeting, risk is the degree of variability of cash flows.

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Definitions:

Assignee

The party to whom rights or duties under a contract are transferred by another party (the assignor).

Notice of Assignment

A formal notification that a contract or property has been legally transferred from one party to another.

Novation

The process of replacing an existing obligation with a new one, thereby extinguishing the original contract and starting anew.

Privity of Contract

The relationship between parties in a contract that confers rights and obligations. It typically prevents a third party from enforcing or being subject to the terms of the contract.