Using the same discount rate to evaluate all projects, Financial Management

Using the same discount rate to evaluate all projects

Using the same discount rate to evalauate all projects within a multi-business company can lead to.

1) Acceptatnce of low-risk projects that should be rejected.

2) Rejeciton of low risk projects that should be accepted.

3) Acceptance of high risk projects that should be rejected.

4) All three issues.

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Financial Management: Using the same discount rate to evaluate all projects

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