Question: When adjusting a project in a new industry which the company is not currently operating in, which of the below methods to adjust for risk
When adjusting a project in a new industry which the company is not currently operating in, which of the below methods to adjust for risk would be most appropriate:
a. Certainty equivalents
b. Risk adjusted cash flow figures
c. Risk adjusted discount rate with a divisional beta
d. Certainty equivalents with a divisional beta
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