Which of the Following Statements About the Certainty Equivalent Approach

Which of the following statements about the certainty equivalent approach to project evaluation is false?

A) Risk is incorporated into the analysis by adjusting cash flows rather than the discount rate.
B) Risk is incorporated into the analysis by adjusting the discount rate rather than cash flows.
C) Its use is only valid for projects with cash flows considered to be almost certain.
D) Its use is only valid for cash flows such as government bonds.