Multiple Choice
When incorporating risk into capital budgeting through the interest rate used in NPV or IRR calculations, the rates used are called:
A) inflation adjusted rates.
B) market risk premium.
C) risk-free rates.
D) risk-adjusted rates.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: The Monte Carlo simulation:<br>A)Involves making assumptions that
Q5: The sensitivity/scenario analysis:<br>A)provides a quantitative measure of
Q6: Which of the following is/are included in
Q7: Consideration of risk is essential to the
Q8: The appropriate discount rate used in NPV
Q10: Risk in cash flow estimating for capital
Q11: Average stocks are yielding 7.0%, while short
Q12: Portfolio theory makes it possible to incorporate
Q13: The cost of capital is the appropriate
Q14: A company is considering a project in