The Discount Rate That Will Result in the Lowest Net

question 17

Multiple Choice

The discount rate that will result in the lowest 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.

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Definitions:

Closure and Implementation

The process of concluding tasks or projects and putting decided plans or policies into action.

Closing and Implementing

The final phase in a project or plan where actions are concluded and the strategies or policies are put into operation.

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