Which of the following is/are a risk associated with projects that must be considered when determining the net present value?
A)Only statement I is correct
B)Only statement II is correct
C)Both statements I and II are correct
D)Neither statement I nor II is correct

Question

Quizplus · Accepted Answer

Statement I is correct because risk is an important factor that must be considered when determining the net present value of a project. The risk can be associated with various factors such as market conditions, competition, technological changes, regulatory changes, etc. 
Statement II is also correct because the net present value calculation assumes a constant discount rate over time. However, if the project carries a high level of risk, the discount rate might need to be adjusted to reflect the higher risk.

Which of the Following Is/are a Risk Associated with Projects