What Discount Rate Should Be Used in Net Present Value

question 58

Multiple Choice

What discount rate should be used in Net Present Value assessments?

• A)the weighted average cost of capital of the business.
• B)the government bond rate.
• C)the specific cost of capital associated with funding a particular project.
• D)the expected rate of return required by ordinary shareholders.

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Definitions:

Situational Leadership Model

A leadership theory proposing that effective leaders adjust their style according to the maturity and competency of their followers.

Task Behavior

The actions and activities an individual undertakes to achieve a specific objective.

Relationship Behavior

Actions and interactions that define the nature of relationships between individuals or groups.

Subordinates

Employees or team members who are ranked lower within an organization's hierarchy and report to a supervisor or manager.