Some companies inflate the discount rate used in the net present value method in order to compensate
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Some companies inflate the discount rate used in the net present value method in order to compensate for risk associated with the capital expenditure project. This approach is unsound. Explain why and suggest an alternative approach that is theoretically preferable. LO9
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Related Book For 
Cost Accounting
ISBN: 9780538828079
11th Edition
Authors: Lawrence H. Hammer, William K. Carter, Milton F. Usry
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