If all projects are assigned the same discount rate for purposes of evaluation, which of the following could occur?
A) Low-risk projects could be rejected when in fact they are good investment choices.
B) High-risk projects could be accepted when in fact they are poor investment choices.
C) High-risk projects could be accepted when in fact they are good investment choices.
D) All of the choices could occur when using a single discount rate for all projects.
Answer: D
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