Equation represents an appropriate discount rate for project

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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

Reference no: EM131606195

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