A consequence for a company that uses a single discount rate to evaluate projects is that:
A)high systematic risk divisions will find it hard to have their projects accepted.
B)low systematic risk divisions will find it easy to have their projects accepted.
C)high systematic risk divisions are likely to stagnate and even close down.
D)the systematic risk of the company will drift upward over time.

Question

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The Answer of A consequence for a company that uses a single discount rate to evaluate projects is that:
A)high systematic risk divisions will find it hard to have their projects accepted.
B)low systematic risk divisions will find it easy to have their projects accepted.
C)high systematic risk divisions are likely to stagnate and even close down.
D)the systematic risk of the company will drift upward over time.

A Consequence for a Company That Uses a Single Discount