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The subjective approach to project analysis: Allows managers to randomly adjust the discount rate assigned to a project once the project's beta has been determined.
The subjective approach to project analysis: |
Allows managers to randomly adjust the discount rate assigned to a project once the project's beta has been determined. |
Applies a lower discount rate to projects that are financed totally with equity as compared to those that are partially financed with debt. |
Assigns discount rates to projects based on the discretion of the senior managers of a firm. |
Uses the WACC of Firm X as the basis for the discount rate for a project under consideration by Firm Y. |
Is used only when a firm has an all-equity capital structure. |
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