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One should use caution when using decision tree analysis to evaluate projects, because __________. A) decisions at the early stage are likely to be riskier,
One should use caution when using decision tree analysis to evaluate projects, because __________.
A) decisions at the early stage are likely to be riskier, and hence should use a higher discount rate
B) if a negative NPV is actually occurring, management should opt out of the project to minimize the loss in firm value
C) decision trees are only used for financial planning
D) both A and C
E) both A and B
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