Which of the below equation represents an appropriate


1. Which of the below equation represents an appropriate discount rate for a project?

Discount Rate = Real Rate - Default Premium + Risk Premium of Project

Discount Rate = Real Rate + Inflation + Risk Premium of Project

Discount Rate - Real Rate + Inflation - Risk Premium of Project

Discount Rate = Risk-free Rate + Inflation + Risk Premium of Project

2. ______ is the risk faced by companies involved in international trade.

Transaction exposure

Operating exposure

Translation exposure

Contract exposure

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Financial Management: Which of the below equation represents an appropriate
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