Which Three the Following Steps Would You Complete When Adjusting

question 38

Multiple Choice

Which three the following steps would you complete when adjusting for risk through the discount rate?

• A) Add a premium to the risk- free discount rate
• B) Calculate net present value, based solely on the premium adjustment
• C) Use the risk- adjusted discount rate to calculate net present value
• D) Make decisions, based on a subjective judgement of the risk

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Definitions:

Managing Suppliers

The process of working effectively with third-party organizations that provide goods and services, to ensure they meet the project's quality, timeline, and budget requirements.

Performance Specifications

Descriptions of the operational requirements and the standards to which a product, service, or project must adhere.

Administrative Function

The tasks related to managing an organization's internal operations, such as record keeping, payroll, and compliance.

Project Administrative

Pertains to the administrative tasks involved in managing a project, including documentation, scheduling, and coordination activities.