Ignoring risk in capital budgeting can lead to incorrect decisions and change the risk character of the firm.

Ignoring risk in capital budgeting can lead to incorrect decisions as it does not account for the possibility of negative outcomes or the likelihood of risk occurring. This can result in investments being made that are too risky and not profitable for the firm in the long run. It can also change the risk character of the firm by increasing its overall risk exposure if risky investments are consistently chosen. Therefore, it is important to consider risk in capital budgeting decisions to make informed and accurate choices that align with the firm's risk tolerance and overall goals.