Accounting for Risk. Your employees have estimated the net present value of project X to be $1.2
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Accounting for Risk. Your employees have estimated the net present value of project X to be $1.2 million.
Their report says that they have not accounted for risk, but that with such a large NPV, the project should be accepted since even a risk-adjusted NPV would likely be positive. You have the final decision as to whether to accept or reject the project. What is your decision?
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