Adjusted Present Value

Multiple Choice

Adjusted present value:

A) evaluates the project as if it was all equity financed.
B) evaluates the project as if it was all debt financed.
C) evaluates the project as if it was all equity financed and then adds the value of side effects, which . are discounted at separate rates reflecting their own systematic risk.
D ) evaluates the project as if it was all debt financed and then adds the value of side effects, which are discounted at separate rates reflecting their own systematic risk.