When choosing the appropriate interest rate to evaluate a public project, which of the following should be used?
A)current market interest rate
B)the rate of return on private investment
C)social discount rate
D)private sector MARR
E)external rate of return

Question

Quizplus · Accepted Answer

The social discount rate is used to evaluate public projects because it reflects the time value of money from a societal perspective, considering the project's impact on social welfare rather than just market or private returns.

When Choosing the Appropriate Interest Rate to Evaluate a Public