the firm's other assets and with returns on most other stocks in the economy, the project will have a high degree of all three types of risk.

$$

$-$Selectrisk include sensitivity analysis, scenario analysis, and Monte Carlo simulation. The risk$-$adjusted cost of capital is the cost of capital appropriate for a given project, given the riskiness of that project. The greater the project's risk, the $[$Sal $$ its cost of capital. Give the correct response to each of the following questions.

Which of the following statements defines scenario analysis?

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In which of the following capital budgeting projects would you be more likely to use Monte Carlo simulation?

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