What does a project’s stand-alone risk reflect?

What does a project’s stand-alone risk reflect?

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What does a project’s stand-alone risk reflect?

Answer and ExplanationSolution by a verified expert
Explanation The cash flows from a project that are projected for the future are the estimated values and not the actual values. Since these figures can be higher or lower than the actual values; t...

Explanation

The cash flows from a project that are projected for the future are the estimated values and not the actual values. Since these figures can be higher or lower than the actual values; the stand-alone is what measures the deviation of the actual figures from the projected figures.

Verified Answer

The uncertainty about the expected future cash flows from a project are reflected by the stand-alone risk.

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