The Appropriate Interest Rate to Use in Capital Budgeting Is

question 71

Multiple Choice

The appropriate interest rate to use in capital budgeting is:

• A)always the company's cost of capital.
• B)is the company's cost of capital if the project's risk is about the same as the company's.
• C)the cost of capital plus any additional risk premium required to compensate for the project's higher risk.
• D)b and c.

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