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Question 7 Which of the following would be the best method of incorporating project risk into the capital budgeting decision? Adjusting the discount rate upward

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Question 7 Which of the following would be the best method of incorporating project risk into the capital budgeting decision? Adjusting the discount rate upward for increasing risk Picking a risk factor equal to the average discount rate Ignoring it Adjusting the discount rate downward for increasing risk Using the company's WACC as the discount rate since risk does not matter

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