The Use of the Same Cost of Capital (Risk Adjusted

question 19

Multiple Choice

The use of the same cost of capital (risk adjusted discount rate) for all capital projects in a corporation

• A)is usually the correct procedure.
• B)is incorrect since different divisions of the corporation may be faced with different levels of risk.
• C)is incorrect since different capital projects,even in the same division,may be faced with different levels of risk.
• D)Both B and C

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Definitions:

Site Selection

The process of choosing an optimal location for a business or facility, based on factors like customer accessibility, costs, and resources.

Proximity Of Suppliers

The closeness or geographical distance of suppliers to the business, which can impact lead times, transportation costs, and inventory management.

Labor Pool

The supply of available workers in a particular area or sector.

Location

Refers to a specific place or position where something exists or operates.