Which of the Following Procedures Best Accounts for the Relative

question 59

Multiple Choice

Which of the following procedures best accounts for the relative risk of a proposed project?

• A) adjusting the discount rate downward if the project is judged to have above-average risk.
• B) reducing the npv by 10% for risky projects.
• C) picking a risk factor equal to the average discount rate.
• D) ignoring risk because project risk cannot be measured accurately.
• E) adjusting the discount rate upward if the project is judged to have above-average risk.

---

Definitions:

Tardiness

The act of being late or delaying arrival beyond the expected or scheduled time, often viewed negatively in professional and educational settings.

Job Simplification

The process of breaking down tasks into simpler and smaller components to increase efficiency and reduce complexity.

Assembly-Line Job

Positions in a manufacturing process where each worker is responsible for a specific, repetitive task in the sequence of production.

Job Design Strategy

The process of defining how work will be performed and what tasks will be required in a given job.