_________represent the percent of estimated cash inflows that investors would be satisfied to receive for certain rather than the cash inflows possible from the project.
A) Certainty equivalents
B) Time-anchored cost of capitals
C) Annualized net present values
D) Risk-adjusted discount rates

Question

Quizplus · Accepted Answer

Certainty equivalents represent the minimum percentage of cash inflows that investors would be willing to accept in order to forgo the risk associated with uncertain cash flows from a project. Essentially, it is the percentage of certain cash flows that is equivalent in value to the uncertain cash flows from the project.

_________Represent the Percent of Estimated Cash Inflows That Investors Would