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Andrews [41]
3 years ago
15

g The discount rate assigned to an individual project should be based on: C) an average of the company's overall cost of capital

for the past five years. B) the actual sources of funding used for the project. E) the risks associated with the use of the funds required by the project. A) the company's overall weighted average cost of capital. D) the current risk level of the overall firm.
Business
1 answer:
melomori [17]3 years ago
5 0

Answer:

E) the risks associated with the use of the funds required by the project.

Explanation:

Discount rate for an individual project should be based on the riskiness of the project.

Using the company's overall weighted average cost of capital might lead to misleading estimates because the project might be more or less risky than the overall firm

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