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:
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| A) should use WACC to discount your CFFAs. |
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| B) should use a pure play approach if available firms. |
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| C) should lower your WACC to adjust for the risk of the project. |
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| D) should increase your WACC to adjust for the risk of the project. |
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| E) Both (B) and (C) are correct. |
Which of the following is false?
Question 12 options:
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| A) Breakeven analysis focuses on the bid price of NPV robustness checks. |
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| B) Scenario analyses is when you change all variables at a time for a given economic scenario in your CFFA. |
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| C) The output of Monte Carlo simulation for NPV is an estimate of the probability of obtaining a positive net present value. |
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| D) Sensitivity analysis is when you change one variable at a time in your CFFA. |
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| 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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