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Which of the following procedures does the text say is used most frequently by businesses when they do capital budgeting analyses? a. Differential project risk

Which of the following procedures does the text say is used most frequently by businesses when they do capital budgeting analyses? a. Differential project risk cannot be accounted for by using "risk-adjusted discount rates" because it is highly subjective and difficult to justify. It is better to not risk adjust at all. b. Other things held constant, if returns on a project are thought to be positively correlated with the returns on other firms in the economy, then the project's NPV will be found using a lower discount rate than would be appropriate if the project's returns were negatively correlated. c. The firm's corporate, or overall, WACC is used to discount all project cash flows to find the projects' NPVs. Then, depending on

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