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Explain how using a risk-adjusted discount rate improves

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Reference no: EM13505555

1.Explain why we measure a project’s risk as the change in the CV.

2.Explain how using a risk-adjusted discount rate improves capital budgeting decision making compared to using a single discount rate for all projects?

3.Why do we focus on cash flows instead of profits when evaluating proposed capital budgeting projects?

4.What is a sunk cost?  Is it relevant when evaluating a proposed capital budgeting project?  Explain.

5.What is a sunk cost?  Is it relevant when evaluating a proposed capital budgeting project?  Explain.

Reference no: EM13505555

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