Which of the Following Statements About Discount Rates Is True

question 43

Multiple Choice

Which of the following statements about discount rates is true?

• A) The higher the marginal tax rate, the higher the discount rate for future cash flows should be.
• B) The higher the degree of risk involved in a transaction, the higher the discount rate for future cash flows should be.
• C) The longer the time period over which a transaction will generate cash flows, the higher the discount rate should be.
• D) The greater the amount of cash generated by a transaction, the higher the discount rate should be.

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Definitions:

Alcohol Abuse

The excessive or inappropriate consumption of alcohol that negatively impacts an individual's health, social, or occupational life.

Behavior Problems

Issues or disturbances in behavior that are considered to be inappropriate or maladaptive, often discussed in the context of work environment or educational settings.

Open-Door Policy

A management approach where leaders encourage openness and transparency in the workplace by allowing employees to give feedback, raise concerns, or discuss problems without fear of reprisal.

Alternative Dispute Resolution

A range of procedures, such as mediation or arbitration, designed to resolve disputes without the need for litigation.