If the Company Cost of Capital Is 20% and a Proposed

question 40

Multiple Choice

If the company cost of capital is 20% and a proposed project's cost of capital is 15%,then discounting the projects' cash flows at 20% would:

• A) determine where the project plots in relation to the security market line.
• B) make the project look more attractive than it should be.
• C) be correct from a theoretical perspective.
• D) be incorrect and could cause the project to be erroneously rejected.

Comprehend the intangibility of services and strategies to overcome the associated marketing challenges.

Identify and describe the three classifications of services.

Recognize the special attention required by the product/service element in the service marketing mix.

Understand the three properties of products and services that influence consumer purchase decisions and provide relevant examples.