ABSTRACT
In the practical word of business, certainty is a luxury rarely enjoyed by
investors. Quite often, investor have to make very important investment decisions
in situations of uncertainty and risk.
This study looked into the use of accounting methods and techniques. When
appraising rival projects in situations of risk and uncertainty. The study tried to
ascertain the extent to which individuals and businesses use accounting techniques
and methods, when appraising rival projects in situations of risk and uncertainty.
In the process of carrying out the study, secondary data were gathered from
books and journals, while primary data were obtained through personal interview
and questionnaires administered to select business executives, accounting and to
accounting staff of the accounting section of various organizations.
Simple percentage and chi-square techniques were employed in analyzing
the data and testing of hypothesis formulated.
The findings included amongst others:
1. In practices most companies do not use accounting methods and
techniques to incorporate risk and uncertainty when appraising
rival projects
2. Rival projects selected in situations of risk and uncertainty using
accounting methods and techniques generally perform better than
other projects.
Based on these findings, some recommendations were put forward for
consideration in chapter five.
