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To Calculate the Adjusted Present Value,one Will

Question 2

Multiple Choice

To calculate the adjusted present value,one will:


A) multiply the additional effects by the all equity project value.
B) add the additional effects of financing to the all equity project value.
C) divide the project's cash flow by the risk-free rate.
D) divide the project's cash flow by the risk-adjusted rate.
E) add the risk-free rate to the market portfolio when B equals 1.

Correct Answer:

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