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Q. Show the Advantages of adjusted discount rate?

Advantages:-

(1) It is simple to understand and simple to calculate.

(2) The risk premium rate comprised in the risk adjusted rate takes care of the risk element in the future cash flows of the project.

(3) It takes into account the risk adverse attitude of investors.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M9575285

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