Solved

If a Company Uses the Same Discount Rate for Evaluating

Question 156

Multiple Choice

If a company uses the same discount rate for evaluating all projects,which of the following results is likely?


A) Accepting poor,high-risk projects.
B) Rejecting good,low-risk projects.
C) Accepting only good,low risk projects.
D) Accepting no projects.
E) Answers a and b are both correct.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q2: If a project's NPV exceeds the project's

Q8: When considering two mutually exclusive projects, the

Q151: Any capital budgeting investment rule should depend

Q152: If a firm faces capital rationing,it should

Q153: Whitney Crane Inc.has the following independent investment

Q154: Net present value and internal rate of

Q155: The primary function of the capital budget

Q157: Two mutually exclusive projects each have a

Q159: The IRR of normal Project X is

Q160: Using the same risk-adjusted discount rate to