The discount rate used to determine the present value of future cash flows is the cost of capital.
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Q9: Capital rationing refers to the limiting of
Q10: All capital budgeting projects are independent projects.
Q11: Accepting a positive-NPV project increases shareholder wealth.
Q12: The NPV method determines how much the
Q13: Capital budgeting decisions, once made, are not
Q15: When two projects are mutually exclusive, accepting
Q16: The net present value technique is an
Q17: The goal of the capital budgeting decision
Q18: Capital budgeting plans are made according to
Q19: All contingent projects are mandatory projects.
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