Assignment:
Q1. Discuss the advantages and disadvantages of incorporating debt capacity differences in the capital budgeting decision process.
Q2. Is there any difference between the risk adjustments applied to cash inflows and cash outflows? Explain your answer.
Q3. Can differential risk adjustments be made to single cash flows, or must the same adjustment be made to all of a project’s cash flows?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.