You are considering a capital acquisition; however, you are nervous about the purchase. You plan on using

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You are considering a capital acquisition; however, you are nervous about the purchase. You plan on using an NPV analysis, so what might you do to account for risky future cash flows?

(1) Require a higher risk-adjusted rate of return in the analysis

(2) Require a lower hurdle rate

(3) Project more conservative future cash flows

(4) Assume a higher earnings growth rate

Posted Date: May 19, 2024 07:09 AM

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You are considering a capital acquisition; however, you are nervous about the purchase. You plan on using

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