To avoid double counting or omitting the effects of risks factors what should reflect assumptions that are consistent with those inherent in the cash flows?
Wait, wait, wait... Are we sure we're not just talking about a fancy calculator here? I mean, 'cause if that's the case, I'm going with E) The one with the most buttons!
Hah, this question's a real brain-teaser! But I reckon C) Discount rates is the way to go. Gotta make sure those discount rates are on point, or you'll be in a world of trouble!
I think the answer is C) Discount rates. The discount rates used should be consistent with the assumptions inherent in the cash flows to properly account for the effects of risk factors.
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