In theory using the same discount rate to evaluate all projects can lead to

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Quizplus · Accepted Answer

Using the same discount rate to evaluate all projects can lead to rejection of low risk projects that should be accepted, acceptance of high risk projects that should be rejected, and control of efforts by employees with a vested interest in a project to manipulate the discount rate. Therefore, none of the options are ideal and all should be considered when using a single discount rate to evaluate multiple projects.

In Theory Using the Same Discount Rate to Evaluate All