The Discount Rate Assigned to an Individual Project Should Be

question 19

Multiple Choice

The discount rate assigned to an individual project should be based on:

• A) the firm's weighted average cost of capital.
• B) the actual sources of funding used for the project.
• C) an average of the firm's overall cost of capital for the past five years.
• D) the current risk level of the overall firm.
• E) the risks associated with the use of the funds required by the project.
• F) None of the above.

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