Explain the risk adjusted discount rate method of Construct a pay-off matrix and find the most acceptable

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Explain the risk adjusted discount rate method of Construct a pay-off matrix and find the most acceptable strategy.

498 Part V: CAPITAL BUDGETING AND INVESTMENT DECISIONS investment decision. What is the purpose of using risk-adjusted discount rate? Suppose a return of `1000 is expected two years hence; IRR = 0.1; and risk probability = 0.08.

Find the riskadjusted present value of the expected return.

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