One Can Determine the Present Value of Risky Cash Flows

Multiple Choice

One can determine the present value of risky cash flows by estimating
I.the expected cash flows and then discount these at a rate that is consistent with the risk of the cash flows;
II.the certainty-equivalent cash flows and then discount these at the risk-free rate;
III.the expected cash flows and then discount these at the risk-free rate

A) I only
B) II only
C) I and II only
D) III only