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Author Question: What is the best approach to take into account the relative risk of a proposed project? (Read 46 times)

ahunt13

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What is the best approach to take into account the relative risk of a proposed project?

picking a risk factor equal to the average discount rate 


reducing the NPV by 20% for risky projects


adjusting the discount rate downward if the project is judged to have below-average risk 


ignoring risk because project risk cannot be measured accurately



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Marked as best answer by ahunt13 on Aug 7, 2023

Afvelasquez

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ahunt13

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it


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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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