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9. A consequence for a company that uses a single discount rate to evaluate projects is that: high systematic risk divisions will find it hard
9. A consequence for a company that uses a single discount rate to evaluate projects is that:
- high systematic risk divisions will find it hard to have their projects accepted.
- the systematic risk of the company will drift upward over time.
- low systematic risk divisions will find it easy to have their projects accepted.
- high systematic risk divisions are likely to stagnate and even close down.
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