The Discount Rate Applied to an Individual Project Should Be

question 31

Multiple Choice

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

• A)sources of funding for that project.
• B)risks associated with the project's cash flows.
• C)sponsoring firm's average level of risk.
• D)expertise of the project's managers.
• E)size and duration of the project's life.

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Definitions:

Managers

Professionals responsible for planning, leading, organizing, and controlling resources to achieve organizational goals.

Empowerment

Empowerment refers to the process of giving individuals or groups the authority, resources, and confidence to take control of their own decisions and actions.

Exercise Power

The act of utilizing authority or influence over others to make decisions or enforce actions.

Organization

A structured group of people working together to achieve common goals through coordinated efforts.