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Author Question: A firm is considering a new project whose risk is smaller than the risk of the firms average ... (Read 92 times)

Dannyrod2

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on: Aug 7, 2023
A firm is considering a new project whose risk is smaller than the risk of the firm’s average project, based on all methods for assessing risk. In evaluating this project, what would it be reasonable for management to do?

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decrease the estimated IRR of the project to reflect its smaller risk


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decrease the cost of capital used to evaluate the project to reflect the project’s lower-than-average risk


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ignore the risk differential if the project would amount to only a small fraction of the firm’s total assets


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decrease the estimated NPV of the project to reflect its smaller risk 

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by Dannyrod2 on Aug 7, 2023

as4309

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Dannyrod2

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

cassie_ragen

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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