Which of the following statements about discount rates isĀ false?

A. The discount rate for a risky investment should be higher than the discount rate for a risk-free investment.
B. Discount rates can be applied either to the cash flow from a transaction or the taxable income from a transaction.
C. Both a discount rate for computing NPV cannot change from one period to the next and discount rates can be applied either to the cash flow from a transaction or the taxable income from a transaction.
D. A discount rate for computing NPV cannot change from one period to the next.


Answer: C

Business

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