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QUESTION
You are calculating NPV for a project that is riskier than the projects you normally do. Which of the following is the most correct?
You are calculating NPV for a project that is riskier than the projects you normally do. Which of the following is the most correct?
- The project is not in line with the company's normal standards, it should not be considered.
- You should calculate a risk-adjusted NPV using a lower discount rate to make the cash flows smaller.
