Charlie's Grill has restaurants throughout the United States, Canada, and Western Europe.It is considering a proposal to open several restaurants in major cities of India and China.
A) Charlie's Grill should use the company's overall WACC to evaluate all proposals.
B) Charlie's Grill should use a lower discount rate for new ventures to be sure it does not miss out on opportunities.
C) Charlie's Grill should evaluate projects in different regions at discount rates that reflect the risk inherent in those projects.
D) Charlie's Grill should adjust the discount rate for specific regions to reflect the specific sources of funding used.
Correct Answer:
Verified
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