In capital budgeting analysis, the riskiness of a project is evaluated to:

A. determine the modified internal rates of return from the project.
B. determine the appropriate rate of return to use for computing the present value of the estimated cash flows.
C. determine the duration of the project.
D. determine the role of management to ensure project completion within stipulated time.
E. determine the opportunity rate of return.


Answer: B

Business

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Fill in the blank with correct word.

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a. the policy is sound, both legally and ethically b. the policy is sound legally, but not ethically c. the policy is neither legally nor ethically sound d. none of these

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