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    Practical Financial Management Study Set 1
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    Exam 12: Risk Topics and Real Options in Capital Budgeting
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    The Appropriate Discount Rate Used in NPV Calculations in the Certainty
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The Appropriate Discount Rate Used in NPV Calculations in the Certainty

Question 8

Question 8

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The appropriate discount rate used in NPV calculations in the certainty equivalent approach is the risk-free rate.

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