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    Financial Management Theory and Practice Study Set 1
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    Exam 11: Cash Flow Estimation and Risk Analysis
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    Using the Same Discount Rate to Evaluate Projects with Differing
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Using the Same Discount Rate to Evaluate Projects with Differing

Question 45

Question 45

True/False

Using the same discount rate to evaluate projects with differing degrees of risk would,over time,cause the firm to accept too many high-risk projects and to reject too many low-risk proposals.

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