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    Principles of Corporate Finance Study Set 4
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    Exam 13: Dealing With Project Risk and Other Topics in Capital Budgeting
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    The Preferred Approach for Risk Adjustment of Capital Budgeting Cash
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The Preferred Approach for Risk Adjustment of Capital Budgeting Cash

Question 7

Question 7

Multiple Choice

The preferred approach for risk adjustment of capital budgeting cash flows, from a practicalviewpoint, is


A) sensitivity analysis.
B) simulation.
C) risk-adjusted discount rates.
D) certainty equivalents.

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