If a Company Uses the Same Discount Rate for Evaluating

question 46

Multiple Choice

If a company uses the same discount rate for evaluating all projects, which of the following results is likely?

• A) Accepting poor, high-risk projects.
• B) Rejecting good, low-risk projects.
• C) Accepting only good, low-risk projects.
• D) Accepting no projects.
• E) Answers a and b are correct.