The Discount Rate Assigned to an Individual Project Should Be

Multiple Choice

The discount rate assigned to an individual project should be based on:

A) the company's overall weighted average cost of capital.
B) the actual sources of funding used for the project.
C) an average of the company's overall cost of capital for the past five years.
D) the current risk level of the overall firm.
E) the risks associated with the use of the funds required by the project.