Select the correct statement/s from the following:
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Statement I: |
The slope of the NPV profile reflects how sensitive the project is to discount rate changes. |
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Statement II: |
To find total NPV of more than one projects, their NPV cannot be added. |
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Statement III: |
The certainty equivalent coefficient applies adjustments to both, the cash flows (in the numerator) and the discount factor (in the denominator). |
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Statement IV: |
The risk - adjusted discount factor applies adjustment for risk only to the discount factor (denominator). |
| A. | Only statement I is correct |
| B. | Statements II and III are correct |
| C. | Statements III and IV are correct |
| D. | Statements IV and I are correct |
Answer : D Explanation : |
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Option: A Explanation : Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. Explanation will come here. |
