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#4 and #5 answered please 3. Can management have a significant infl 4. Suppose that you are evaluating three R&D projects within your division of

#4 and #5 answered please

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3. Can management have a significant infl 4. Suppose that you are evaluating three R&D projects within your division of a technology firm. Two projects involve follow-on investments that will use proven technology, while the third involves an unproven technology. How should you evaluate the funding decisions for these three projects? 5. What are some advantages to using a scenario expected cash flow approach over an ad hoc risk premium approach when evaluating high-risk projects? 6. How should managers decide on how much cash flow risk that they should take on for their firms? 7. According to current research, do managers generally follow the guidanc given in the above question? Why or why not? 8. Which types of risks should managers hedge? Why? 3. Can management have a significant infl 4. Suppose that you are evaluating three R&D projects within your division of a technology firm. Two projects involve follow-on investments that will use proven technology, while the third involves an unproven technology. How should you evaluate the funding decisions for these three projects? 5. What are some advantages to using a scenario expected cash flow approach over an ad hoc risk premium approach when evaluating high-risk projects? 6. How should managers decide on how much cash flow risk that they should take on for their firms? 7. According to current research, do managers generally follow the guidanc given in the above question? Why or why not? 8. Which types of risks should managers hedge? Why

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