Question

The subjective approach to project analysis:

Answer 1

Answer:

The correct answer is C "Assigns discount rates to projects based on the discretion of the senior managers of a firm".

Explanation:

The abstract way to deal with venture examination doles out rebate rates to ventures dependent on the carefulness of the ranking directors of a firm. The senior supervisory group assumes the most significant job in choose the markdown rate in the undertaking.

Answer 2

Answer:

Assigns discount rates to projects based on the discretion of the senior managers of a firm ( C )

Explanation:

The subjective approach to project analysis allows for a discounted rate to be assigned to projects that are financed using a debt free method ( equity ) of the company. although the discount is always applied to the project at the discretion of the senior management employees/managers of the firm.

projects financed using loans or other form of debit inclined financing cannot be approved for discounts by the senior managers of the firms because the project is debt inclined hence subjective approach cannot be applied to it .