A) 3.
B) -3.
C) 1/3.
D) -1/3.
E) 9.
B) -3.
C) 1/3.
D) -1/3.
E) 9.
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
D
Economics
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