Question
G: What alternative approach to estimate the project discount rate (or cost of capital) did we talk about in class if the riskiness of the
G: What alternative approach to estimate the project discount rate (or cost of capital) did we talk about in class if the riskiness of the project differs from the riskiness of the firm?
H: When computing free cash flows, should we add or subtract net working capital investments? What about investments in PP&E (or capital expenditures)?
I: We discussed that we could use a simulation approach to evaluate the merits of a project given uncertainty about future cash flows. What two metrics do we primarily rely on when evaluating whether or not to accept the project in this setting? What values should these metrics take for us to accept the project?
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