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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)
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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