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  3. Study Set
    Intermediate Financial Management Study Set 2
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    Exam 13: Capital Budgeting: Cash Flows and Risk
  5. Question
    Using the Same Risk-Adjusted Discount Rate to Discount All Cash
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Using the Same Risk-Adjusted Discount Rate to Discount All Cash

Question 70

Question 70

True/False

Using the same risk-adjusted discount rate to discount all cash flows ignores the fact that the more distant cash flows are more risky.

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