Question: If your project has a lower beta than the overall firm then you Question 16 options: A) should use WACC to discount your CFFAs. B)

If your project has a lower beta than the overall firm then you

Question 16 options:

A) should use WACC to discount your CFFAs.

B) should use a pure play approach if available firms.

C) should lower your WACC to adjust for the risk of the project.

D) should increase your WACC to adjust for the risk of the project.

E) Both (B) and (C) are correct.

Which of the following is false?

Question 12 options:

A) Breakeven analysis focuses on the bid price of NPV robustness checks.

B) Scenario analyses is when you change all variables at a time for a given economic scenario in your CFFA.

C) The output of Monte Carlo simulation for NPV is an estimate of the probability of obtaining a positive net present value.

D) Sensitivity analysis is when you change one variable at a time in your CFFA.

E) All the above are true.

Which of the following is false?

Question 12 options:

A) Breakeven analysis focuses on the bid price of NPV robustness checks.

B) Scenario analyses is when you change all variables at a time for a given economic scenario in your CFFA.

C) The output of Monte Carlo simulation for NPV is an estimate of the probability of obtaining a positive net present value.

D) Sensitivity analysis is when you change one variable at a time in your CFFA.

E) All the above are true.

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