It Is Necessary to Assign the Appropriate Cost of Capital

question 86

Multiple Choice

It is necessary to assign the appropriate cost of capital for each individual project that reflects that project's ________ when doing capital budgeting.

• A)life
• B)cash flows
• C)riskiness
• D)managers

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Definitions:

Persistence

The quality of continuing steadily despite problems or difficulties.

Hostility

A form of anger and aggressive behavior that can result from frustration, perceived injustice, or other negative feelings.

Demeaning Nature

Refers to the act or attitude of reducing the value or worth of something in a disrespectful manner.

Abusive Supervision

The bullying of subordinates by managers.