When You Are Using Futures Prices to Estimate the Cash

question 25

Multiple Choice

When you are using futures prices to estimate the cash flows of a project the discount rate used is:
I. The cost of capital for the firm
II. The cost of capital for the project
III. The risk free rate

• A) I only
• B) I and II only
• C) III only
• D) II only

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Definitions:

Addicted

The state of being compulsively committed or habituated to a substance, thing, or activity, leading to physiological or psychological dependence.

Alcoholic

An individual who has a dependence on or addiction to alcohol, often characterized by an uncontrollable urge to drink.

Increased B State

This term appears to be fabricated or too specific without a widely recognized definition in scientific literature, so I'll say NO.

Aversive A State

Likely refers to an aversive state, a condition or situation that an organism seeks to avoid due to it being unpleasant or painful.