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Which of the Following Is a Common Adjustment to Net

Question 7

Multiple Choice

Which of the following is a common adjustment to net present value models to incorporate risks inherent in an investment project?


A) The discount rate used in the analysis can be increased.
B) The payback period can be increased.
C) A lower discount rate can be used.
D) Risk is never considered in a model since it can not be quantified.

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