The Discount Rate That Will Result in the Highest Net

question 74

Multiple Choice

The discount rate that will result in the highest net present value for a project is

• A) any rate lower that the cost of capital.
• B) any rate higher than the cost of capital.
• C) the lowest rate used to evaluate the project.
• D) the highest rate used to evaluate the project.

Understand the role and types of accountants, including management and government accountants.

Recognize the importance of financial information publication by not-for-profit organizations.

Identify the components and significance of a firm's balance sheet and its relation to financial positioning.

Understand the preparation and utility of cash budgets in financial planning.