The Discount Rate Assigned to a Proposed Project Is the Rate

question 30

Multiple Choice

The discount rate assigned to a proposed project is the rate:

• A)the firm must expect to earn before committing funding for the project.
• B)the firm can earn on a riskless investment,such as U.S.Treasury bills.
• C)that will create a zero average accounting rate of return.
• D)of return the company desires prior to considering the risks of the project.
• E)that exceeds the economic opportunity cost of investing by the required profit margin.

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