FIN 571 TUTOR Let's Do This /fin571tutor.com FIN 571 TUTOR Let's Do This /fin571tutor.com | Page 73

FIN 571 Week 4 DQ 1
FOR MORE CLASSES VISIT
www.fin571tutor.com
A firm uses a single discount rate to compute the NPV of all its
potential capital budgeting projects, even though the projects
have a wide range of nondiversifiable risk. The firm then
undertakes all those projects that appear to have positive NPVs.
Briefly explain why such a firm would tend to become riskier
over time.
======================================
=========
FIN 571 Week 4 DQ 2
FOR MORE CLASSES VISIT
www.fin571tutor.com