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Suppose that a project's free cash flows are no longer completely certain. Rather, the project's cash flows are subject to high uncertainty and this uncertainty cannot be diversified either by the firm or its shareholders. Holding all else equal, how will this affect your acceptance or rejection decisions when making capital budgeting decisions?

a. It will increase acceptances

b. It will not change your decision making process

c. It will decrease you acceptances

d. Both A and B

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92163434

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