13.10 Chapter 13 outlines five approaches used to recognise risk in capital budgeting 1 Varying the required payback time 2 Adjusting the required rate of return 3 Adjusting the estimated future cash flows 4 Sensitivity (‘what-if’) analysis 5 Estimating the probability distribution of future cash inflows and outflows for each project. 13.11 No. Discounted cash-flow analysis applies to both for-profit and not-for-profit organisations. Not-for-profit organisations must also decide which long-term assets will accomplish various tasks at the least cost. Not-for-profit organisations also incur an opportunity cost of funds.