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Question $50$

A firm may incorporate a country risk rating into the capital budgeting analysis by:

A$.$ adjusting the NPV upward if the country risk rating has fallen $($implying increased risk$)$ below a benchmark level.

B$.$ adjusting the discount rate upward as the country risk rating decreases $($implying increased risk$).$

C$.$ adjusting the NPV upward, and at the same time, also adjusting the discount rate upward as the country risk rating decreases $($implying increased risk$).$

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