Risk and Return
"The tough part of decision making under uncertainty is deciding how much extra return should be required to accept a measurable risk (Managerial Finance, Weston & Copeland, 9th Edition, 1992)."
A lot is better than a little, especially if you receive it sooner or pay it later. If cost avoidance is marginal, it's risky. Revisit it next year (Ray Martin, 1993).
Copyright © 1991-1997, Ray Martin