Which of the Following Is a Common Adjustment to Net

question 7

Multiple Choice

Which of the following is a common adjustment to net present value models to incorporate risks inherent in an investment project?

• A)The discount rate used in the analysis can be increased.
• B)The payback period can be increased.
• C)A lower discount rate can be used.
• D)Risk is never considered in a model since it can not be quantified.

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Definitions:

Tea

A beverage made by steeping processed leaves, buds, or twigs of the tea plant, Camellia sinensis, in hot water, enjoyed worldwide for its flavor and health benefits.

Cameras

Devices used to capture images, either as still photographs or as moving images (videos), through the use of lenses and a recording medium.

Demand for Film

Refers specifically to the desire or willingness of consumers to purchase movies or cinema tickets at various price levels.

Price

The cash amount forecasted, required, or paid out for acquiring something.