If All Projects Are Assigned the Same Discount Rate for Purposes

question 2

Multiple Choice

If all projects are assigned the same discount rate for purposes of evaluation,which of the following could occur?

• A)Low-risk projects could be rejected when in fact they are good investment choices.
• B)High-risk projects could be accepted when in fact they are poor investment choices.
• C)High-risk projects could be accepted when in fact they are good investment choices.
• D)All of the choices could occur when using a single discount rate for all projects.

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