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In Order to Account for Any Variation in the Risk

Question 13

Multiple Choice

In order to account for any variation in the risk associated with the estimated cash flows of a project:


A) the discount rate may be adjusted to reflect a higher degree of associated risk.
B) the estimated cash flows may be reduced to reflect a higher degree of associated risk.
C) the net present valuation of the project may be supplemented by breakeven and sensitivity analysis.
D) all of the given answers.

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