Which of the Following Is NOT an Acceptable Method of Measuring

question 137

Multiple Choice

Which of the following is NOT an acceptable method of measuring risk for capital budgeting purposes?

• A) modified internal rate of return
• B) sensitivity analysis
• C) using a risk-adjusted discount rate
• D) proxy, or pure play method for estimating a project's beta

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Definitions:

Perfect

To complete all required legal steps to finalize a lien, security interest, or title claim on property, ensuring it is enforceable against third parties.

Anti-assignment Clause

A provision in a contract that prohibits the transfer of rights or delegation of duties under the contract to another party without consent.

Assignment

A task or piece of work allocated to someone as part of a job or course of study.

Lawsuit

A legal action initiated by one party against another for the enforcement or protection of a right, or the redress or prevention of a wrong.