If a typical S.A.company uses the same discount rate to evaluate all projects, the firm will most likely become

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Using the same discount rate for all projects assumes that the risk level of each project is equal, which is unlikely to be true. As a result, the company may end up accepting riskier projects that do not match the discount rate, causing a decline in overall value. Over time, this can lead to a higher level of risk and further decline in value.

If a Typical S