If the risk of an investment project is different from the risk of the company as a
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Question:
If the risk of an investment project is different from the risk of the company as a whole, then:
aThe market rate of return should be used as the discount rate of the project
BThe discount rate of the project must be adjusted according to the risk of the project's cash flow
CThe discount rate of the project must be adjusted according to the source of the project financing
DThe average discount rate used for all previous projects shall be used as the discount rate for new projects
EThe initial cost of the project should be increased or reduced to take into account the increased or decreased risk.
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