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Question 7 (1 point) What is the best approach to take into account of the relative risk of a proposed project? Question 7 options: ignoring

Question 7 (1 point)

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What is the best approach to take into account of the relative risk of a proposed project?

Question 7 options:

ignoring risk because project risk cannot be measured accurately

reducing the NPV by 10% for risky projects

picking a risk factor equal to the average discount rate

adjusting the discount rate upward if the project is judged to have above-average risk

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