Which of the Following Statements About the Risk-Adjusted Discount Rate

question 47

Multiple Choice

Which of the following statements about the risk-adjusted discount rate approach and the certainty equivalent approach to project evaluation is most correct?

• A)NPVs will differ under either method according to the 'risk adjustment factor'.
• B)NPVs should be the same under either approach.
• C)NPVs are generally higher using the 'risk-adjusted discount rate' approach.
• D)NPVs are generally lower using the 'risk-adjusted discount rate' approach.

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