Economics Capital Budgeting Questions
The impact of project complexity on capital budgeting decisions is that it can increase the level of uncertainty and risk associated with the project. This can make it more difficult for decision-makers to accurately estimate the project's cash flows, costs, and potential returns. As a result, complex projects may require more detailed analysis and evaluation, as well as additional resources and expertise, to make informed capital budgeting decisions. Additionally, the higher level of complexity may also increase the likelihood of delays, cost overruns, and potential failure of the project, which further affects the decision-making process.