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Firms should adjust for execution risk by capturing this risk in the expected cash flows generated by the project. assigning a higher cost of capital

Firms should adjust for execution risk by

capturing this risk in the expected cash flows generated by the project.

assigning a higher cost of capital to new projects.

ignoring execution risk since it is diversifiable.

noticing missteps in the firm's execution of new projects.

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		capturing this risk in the expected cash flows generated by the project.
		assigning a higher cost of capital to new projects.
		ignoring execution risk since it is diversifiable.
		noticing missteps in the firm's execution of new projects.

Question

Firms should adjust for execution risk by capturing this risk in the expected cash flows generated by the project. assigning a higher cost of capital

Firms should adjust for execution risk by capturing this risk in the expected cash flows generated by the project. assigning a higher cost of capital to new projects. ignoring execution risk since it is diversifiable. noticing missteps in the firm's execution of new projects.

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Firms should adjust for execution risk by

capturing this risk in the expected cash flows generated by the project.

assigning a higher cost of capital to new projects.

ignoring execution risk since it is diversifiable.

noticing missteps in the firm's execution of new projects.