Which of the Following Is NOT a Method for Considering

question 52

Multiple Choice

Which of the following is NOT a method for considering additional risk with international projects?

• A) adding an additional risk premium to the discount factor used
• B) decreasing expected cash flows
• C) conducting detailed sensitively and scenario analysis
• D) All of the above are legitimate methods for considering additional risk.

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Definitions:

Substantial Unemployment

A situation where there is a significantly high rate of unemployment in a particular area, reflecting a large number of people unable to find jobs.

Wages

Compensation paid to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Great Depression

A severe worldwide economic downturn that took place mostly during the 1930s, leading to high unemployment, low output, and deflation.

Curve

In economics, a curve often represents graphical data showing relationships between two variables, such as supply and demand or price and quantity.