If a Company Uses the Same Discount Rate for Evaluating

question 156

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 both correct.

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