In the present value model, risk is generally incorporated into the

Name: In the present value model, risk is generally incorporated into the
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In the present value model, risk is generally incorporated into the discount rate, as it reflects the required rate of return adjusted for the risk associated with the investment. The cash flows and timing are deterministic factors, and the total value is calculated as the present value of the expected cash flows discounted at the required rate of return.

In the Present Value Model, Risk Is Generally Incorporated into the