Assessing the risk associated with future cash flows, Financial Accounting

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Assessing the risk associated with future cash flows

Response to the following questions:

1. Are the required rate of return and the cost of capital the same thing? Explain.

2. Suppose a discount retail chain is considering opening a new outlet in another city. What should they consider in assessing the risk associated with the future cash flows of this new outlet?

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Financial Accounting: Assessing the risk associated with future cash flows

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