7. Project risk refers to the variability in a project\'s NPW True/False If any

Question

7. Project risk refers to the variability in a project's NPW True/False If any equipment is well maintained during its economic life, O&M; costs generally do not increase as the equipment ages. True / False 9. Equity financing involved capital coming from either government programs or funds raised from an issuance of stock True/ False Sensitivity Analysis reveals which factors can have the greatest impacts and therefore explains any interaction among variables 10 True/ False Cost of Equity is the minimum rate of return a firm must offer its investment bankers as compensate for loaning the company money 11 True/ False

Explanation / Answer

7. True

Explanation: Any variability gives rise to risk. In a project, cash flows are estimated to determine the profitability of it. The Net Present Worth (NPW) of a project is estimated to find out its investment worthiness. Any variability in the NPW is called project risk.

Related Questions

Navigate

• Browse (All)
• Browse 7
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.