FINANCE-The appropriate discount rate to be used when analyzing an investment project

QUESTION

The appropriate discount rate to be used when analyzing an investment project is the:a.rate of return that will result in an NPV of zero.b.firm’s current cost of capital.c.project’s internal rate of return.d.rate of return financial markets offer on investments of similar risk.e.rate of interest the firm receives on its excess cash investments.

 

ANSWER:

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