The Certainty Equivalent Net Cash Flow Can Be Defined As

Multiple Choice

The certainty equivalent net cash flow can be defined as:

A) the net cash flow obtained from an equal investment in a government security.
B) the NPV of a project whereby the cost of capital is adjusted by a 'no risk' factor.
C) the NPV of a project whereby cash flows are discounted by the risk-free rate of interest.
D) the smallest certain cash flow that a decision maker would be prepared to accept in exchange for the expected risky cash flow.