The certainty equivalent approach makes risky projects more acceptable by weighting the cash flow estimates.

Name: The certainty equivalent approach makes risky projects more acceptable by weighting the cash flow estimates.
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Question

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The certainty equivalent approach adjusts the cash flows of a risky project to reflect their equivalent value if they were certain, rather than making the projects more acceptable by weighting the cash flow estimates.

The Certainty Equivalent Approach Makes Risky Projects More Acceptable by Weighting