Which of the Following Is Not True Regarding the Appropriate

question 9

Multiple Choice

Which of the following is not true regarding the appropriate discount rate to be used in conjunction with discounted cash flow (DCF) decision models?

• A) For projects of "above average" risk, the appropriate discount rate is the weighted-average cost of capital (WACC).
• B) It includes an estimate of the after-tax cost of debt.
• C) It can differ across investment projects, according to perceived risk of each project.
• D) It is also sometimes referred to as the "hurdle rate" for capital budgeting purposes.
• E) It can properly be viewed as the "minimum required rate of return" for a proposed investment.

---

Definitions:

Deviant Behavior

Actions or behaviors that violate the norms or expectations of a society or group.

Deviant Behaviors

Actions that violate societal norms or expectations, which can range from minor breaches of etiquette to serious violations such as crimes.

Positivist Perspective

A theoretical approach in sociology and criminology that posits that human behavior is shaped by external factors and can be objectively measured and understood.

Active

Refers to being engaged in movement or exerting energy, often relating to physical fitness or participation in activities.