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1) our company is thinking of 2 mutually-exclusive projects. Both require an initial outlay of= $10,000 and will operate for five years. Project A will create expected cash flows of= $5,000 per year for years 1 through 5, while project B will create expected cash flows of= $6,000 per year for years 1 through 5. Since project B is riskier of two projects, management has determined to apply a required rate of return of 15% to its evaluation but only a 12% required rate of return to project A. Describe each project’s risk-adjusted net present value.

2) Business risks can normally be categorized into 4 categories: property, market, employee, and customer.
By using each of above 4 categories of risk, build up the analysis on how financial management techniques or policies can be utilized to mitigate each of these risks. To supplement your risk analysis, determine at least 1 article for each of your risk mitigation techniques or policies. 3 Pages doubled space.

Requirements
Min Pages: 3
Max Pages: 5

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915347

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