If a Company Uses the Same Discount Rate for Evaluating

question 156

Multiple Choice

If a company uses the same discount rate for evaluating all projects,which of the following results is likely?

• A) Accepting poor,high-risk projects.
• B) Rejecting good,low-risk projects.
• C) Accepting only good,low risk projects.
• D) Accepting no projects.
• E) Answers a and b are both correct.

---

Definitions:

Vulcanization

A chemical process for converting natural rubber or related polymers into more durable materials via the addition of sulfur or other equivalent curatives or accelerators.

Synthetic Rubber

A man-made elastomer designed to mimic natural rubber, noted for its elasticity and produced through polymerization processes.

Saran

A synthetic polymer known for its barrier properties, particularly for preventing the passage of water vapor; used in food wrap and various coatings.

Alternating Copolymer

A polymer made from two different monomers arranged in an alternating sequence throughout the chain.