You are trying to determine the appropriate risk-adjusted rate,in Venus sun-dollars for a project on Venus.You know that the correct risk-adjusted discount rate in U.S.dollars is 15% and the risk-free rate in dollars is 8%.If the risk-free rate in sun-dollars is 5%,then what is the correct risk-adjusted discount rate in dollars? Round to the nearest .01%

Question

Quizplus · Accepted Answer

(1.15/1.08)= (1+risk adjusted sun-dollars)/ 1.05 =====>
risk-adjusted sun-dollar rate = .1180556

You Are Trying to Determine the Appropriate Risk-Adjusted Rate,in Venus