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The discount rate assigned to a project in an industry outside the firm s existing business should be based on an average of the firm
The discount rate assigned to a project in an industry outside the firms existing business should be based on an average of the firms overall cost of capital for the past five years. the firms weightedaverage cost of capital. the current risk level of the overall firm. the risks associated with the use of the funds required by the project. the actual sources of funding used for the project.
The discount rate assigned to a project in an industry outside the firms existing business should be based on
an average of the firms overall cost of capital for the past five years.
the firms weightedaverage cost of capital.
the current risk level of the overall firm.
the risks associated with the use of the funds required by the project.
the actual sources of funding used for the project.
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Financial and managerial accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
1st edition
978-1118016114
