Which of the following is NOT an approach to estimate risk-adjusted discount rates for an atypical investment?
A) Estimating the weighted average cost of capital of firms in an industry associated with the project.
B) Adjusting the firm's cost of capital up or down based on the risk level and financing of the project.
C) Estimating betas and the risk associated with the firm's overall investments.
D) Estimating beta for the project by regressing the ROA of the project against the ROA of the market index.
Correct Answer:
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