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The Discount Rate Assigned to a Proposed Project Is the Rate

Question 39

Multiple Choice

The discount rate assigned to a proposed project is the rate:


A) the firm must expect to earn before committing funding for the project.
B) the firm can earn on a riskless investment,such as U.S.Treasury bills.
C) that will create a zero average accounting rate of return.
D) of return the company desires prior to considering the risks of the project.
E) that exceeds the economic opportunity cost of investing by the required profit margin.

Correct Answer:

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