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    Practical Financial Management Study Set 1
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    Exam 12: Risk Topics and Real Options in Capital Budgeting
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    When Incorporating Risk into Capital Budgeting Through the Interest Rate
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When Incorporating Risk into Capital Budgeting Through the Interest Rate

Question 9

Question 9

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:

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