Question: Now assume that projects are identified within divisions as being high risk, average risk, or low risk. a . What hurdle rates would be assigned

Now assume that projects are identified within divisions as being high risk, average risk, or low risk. a. What hurdle rates would be assigned to projects in the three risk categories for the com- pany and within each division? b. How comfortable are you with the 1.1 and 0.9 project risk-adjustment factors? Is there a theoretical foundation for the size of these adjustments

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