Which one of the following should be the primary consideration when determining the appropriate cost of capital for a specific project?

Question

Quizplus · Accepted Answer

The primary consideration when determining the appropriate cost of capital for a specific project is the risk level of the project. The cost of capital should reflect the riskiness of the cash flows that the project is expected to generate, as different projects may have different levels of risk.

Which One of the Following Should Be the Primary Consideration