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AFE · Question #168

What technique uses a risk-adjusted discount rate and contractual, promised, or most likely cash flows?

The correct answer is D. Discount rate adjustment. See the full explanation below for the reasoning.

Question

What technique uses a risk-adjusted discount rate and contractual, promised, or most likely cash flows?

Options

  • AAsset/Liability weighted
  • BFair value
  • CPresent value
  • DDiscount rate adjustment

How the community answered

(23 responses)
  • A
    13% (3)
  • B
    4% (1)
  • C
    9% (2)
  • D
    74% (17)

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