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24 Which of the following procedures best accounts for the relative risk of a proposed project? a. Picking a risk factor equal to the average

24 Which of the following procedures best accounts for the relative risk of a proposed project?

a.
Picking a risk factor equal to the average discount rate.

b.
Reducing the NPV by 10% for risky projects.

c.
Adjusting the discount rate upward if the project is judged to have above-average risk.

d.
Adjusting the discount rate downward if the project is judged to have above-average risk.

e.
Ignoring risk because project risk cannot be measured accurately.

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	a.	Picking a risk factor equal to the average discount rate.
	b.	Reducing the NPV by 10% for risky projects.
	c.	Adjusting the discount rate upward if the project is judged to have above-average risk.
	d.	Adjusting the discount rate downward if the project is judged to have above-average risk.
	e.	Ignoring risk because project risk cannot be measured accurately.