Business
Business, 23.04.2020 21:26, jaceechesick

If the risk of an investment project differs from the overall firm’s risk then: the project’s discount rate must be adjusted based on the risks of the project’s cash flows. the project’s initial cost should be increased/decreased to account for the increase/decrease in risk. the average rate used for all prior projects should be used as the new project’s discount rate. the market rate of return should be used as the project’s discount rate. the project’s discount rate must be adjusted based on the sources of project financing.

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If the risk of an investment project differs from the overall firm’s risk then: the project’s discou...

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