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If a project is expected to have a higher than average risk, what input into the NPV formula could be changed to account for this?
If a project is expected to have a higher than average risk, what input into the NPV formula could be changed to account for this? In other words, what can you change to calculate a more conservative estimate for NPV
tableatableIncrease the number of periods for the project assume the project is expected to have positive cashflows in later yearsbIncrease the IY for the duration of the project.cShift the expected cash inflows from the project from Year to Year dDecrease the initial cash outlay at the start of the project.
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