Which of the Equations Below Represents an Appropriate Discount Rate

question 81

Multiple Choice

Which of the equations below represents an appropriate discount rate for a project?

• A)Discount Rate = Real Rate - Default Premium + Risk Premium of Project
• B)Discount Rate = Real Rate + Inflation + Risk Premium of Project
• C)Discount Rate = Real Rate + Inflation - Risk Premium of Project
• D)Discount Rate = Risk-free Rate + Inflation + Risk Premium of Project

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