1. The discount rate assigned to an individual project should be based on the
Firm's weighted average cost of capital.
Average of the firm's overall cost of capital for the past five years.
Current risk level of the overall firm.
Risks associated with the use of the funds required by the project.
2. Which of the following is NOT a capital component, i.e., a source of investor-supplied capital?
Notes payable.
Account payable.
Long-term debt.
Preferred stock.