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Time Element: The time element refers to the occurrence of cost and profit of a decision at different points of time. It requires to be adjustable for the time value of money to be comparable — the possibilities of uncertainty rise when the period is longer.
Future uncertainty: The decisions in the capital budgeting are long term, which means they are unpredictable. An actual guess is no possible even making special efforts and hard work. The uncertainty in the future takes place relating to different factors such as the cost of the project, need in the future, competition, and several more.
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