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If a Company Uses the Same Discount Rate for Evaluating

Question 46

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 correct.

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