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Marcos Corp. uses risk-adjusted discount rates according to the risk of projects and divisions.The company adjusts up 3% for riskier projects or divisions and adjusts
Marcos Corp. uses risk-adjusted discount rates according to the risk of projects and divisions.The company adjusts up 3% for riskier projects or divisions and adjusts down 2% for less risky ones.They divide projects into 3 categories, high, average, and low, and do the same to divisions.If the discount rate is 10% for average risk projects of average risk divisions, what would be the discount rate for low risk projects of low risk divisions?
a.6%
b.4%
c.5%
d.7%
e.8%
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