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7. If we ignore the possibility of part of a project's total risk being diversified away, we are considering the project's: a. systematic risk. b.

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7. If we ignore the possibility of part of a project's total risk being diversified away, we are considering the project's: a. systematic risk. b. contribution-to-firm risk. c. diversifiable risk. d. stand-alone risk. 8. The firm should accept a project if: a. the profitability index is greater than or equal to 1. b. the payback period is less than the life of the investment. c. the internal rate of return is positive. d. the internal rate of return is greater than the accounting rate of return

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