Question
3.5) Which statements regarding NPV valuation are correct? A The NPV is calculated by discounting the future expected cashflows with the risk-free rate of return
3.5) Which statements regarding NPV valuation are correct? A The NPV is calculated by discounting the future expected cashflows with the risk-free rate of return B A negative NPV means that the investment is financially not profitable C The cost of debt of a company in the NPV calculation is approximated with the company's beta. D NPV assumes a fixed path into the future and does not incorporate the financial value of real options that are open to investors over the time of an investment E Future cash-flows should be converted to home currency using the spot rate because future exchnage rates are difficult to forecast F When evaluating a company, future cash flows are predicted only for the first years. Then a perpetuity value is added.
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