When evaluating a project, the chance of default is captured by
A)discounting the expected cash flows of the project at the equity premium.
B)calculating the expected cash flows of the project.
C)using the expected return on the market as the discount rate.
D)using the CAPM expected rate of return as the discount rate.

Question

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The Answer of When evaluating a project, the chance of default is captured by
A)discounting the expected cash flows of the project at the equity premium.
B)calculating the expected cash flows of the project.
C)using the expected return on the market as the discount rate.
D)using the CAPM expected rate of return as the discount rate.

When Evaluating a Project, the Chance of Default Is Captured