Question
What is the best approach to take into account the relative risk of a proposed project? picking a risk factor equal to the average discount
What is the best approach to take into account the relative risk of a proposed project? picking a risk factor equal to the average discount rate increasing the NPV by 10% for below-average risk projects adjusting the discount rate downward if the project is judged to have below-average risk ignoring risk because project risk cannot be measured accurately
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th Edition
1260772381, 978-1260772388
