Which of the following is/are a risk associated with projects that must be considered when determining the net present value?
I. Financial risk
II. Pure project risk
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Question

Quizplus · Accepted Answer

Both financial risk and pure project risk must be considered while determining the net present value of a project. Financial risk refers to the risk of investment in the project, while pure project risk refers to the risk associated with completing the project successfully. Both types of risks can impact the net present value of a project, and ignoring either risk can result in inaccurate project evaluations. Therefore, both risks should be considered while determining the net present value.

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