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The discount rate assigned to a project in an industry outside the firms existing business should be based on the risks associated with the use
The discount rate assigned to a project in an industry outside the firms existing business should be based on
the risks associated with the use of the funds required by the project.
the firms weighted-average cost of capital.
an average of the firms overall cost of capital for the past five years.
the current risk level of the overall firm.
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