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Several methods were described in your textbook to deal with the issue of differing levels of project risk. These include risk adjusted discount rates, simulation
Several methods were described in your textbook to deal with the issue of differing levels of project risk. These include risk adjusted discount rates, simulation analysis, scenario analysis, and break-even analysis. Which of these would you favor if you were CFO of a corporation? Why? Which of the techniques seems like it would yield the most accurate results? Which would be easiest to implement?
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