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