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If a company uses NPV for capital budgeting, how does an analyst adjust for projects of differing risk? If a company, with a normal payback

If a company uses NPV for capital budgeting, how does an analyst adjust for projects of differing risk? If a company, with a normal payback requirement of two years or less, uses the following techniques, how might the company adjust for projects of differing risk in the approval process?

  • NPV
  • Simple payback

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