The Selection of an Appropriate Discount Rate for a Particular

question 37

Multiple Choice

The selection of an appropriate discount rate for a particular project is primarily dependent upon the project's

• A)time to closure.
• B)initial cost.
• C)level of risk.
• D)starting date.
• E)expected dollar return.

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Definitions:

Developing Countries

Nations with a lower level of industrialization, lower standard of living, and lower Human Development Index than developed countries.

Former Soviet Union

Refers to the federation of socialist republics that existed from 1922 to 1991, comprising Russia and other neighboring countries.

GNPs

Gross National Products; the total market value of all the final goods and services produced in a country in a given year, plus the net income from foreign investments.

Developed Countries

Nations with a high level of economic development, technological advancement, and standard of living.