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Critics of Adjusting Discount Rates to Reflect a Location's Riskiness

Question 3

Multiple Choice

Critics of adjusting discount rates to reflect a location's riskiness argue that it


A) does not penalize either distant or early cash flows enough.
B) penalizes distant cash flows too heavily.
C) does not penalize early cash flows enough.
D) penalizes early cash flows too heavily.

Correct Answer:

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