Although we use a single discount rate to discount each cash flow, there are theoretical reasons that suggest this is ________.

Name: Although we use a single discount rate to discount each cash flow, there are theoretical reasons that suggest this is ________.
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Question

Quizplus · Accepted Answer

Using a single discount rate assumes that the risk and uncertainty associated with each cash flow is the same, which is unlikely to be true in reality. Therefore, using a single discount rate may not be appropriate.

Although We Use a Single Discount Rate to Discount Each