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Author Question: Assigning separate discount rates to individual projects when determining which projects should be ... (Read 48 times)

joe

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on: Apr 25, 2021

Question 1

Equal annual annuities assume projects are renewable indefinitely.
◦ true
◦ false

Question 2

Assigning separate discount rates to individual projects when determining which projects should be accepted by the firm
◦ may cause the firm's overall weighted average cost of capital to vary over time if the projects accepted change the overall risk level of the firm.
◦ will cause the firm's overall cost of capital to remain constant over time.
◦ will cause the firm's overall cost of capital to decrease over time.
◦ will change the debt-equity ratio of the firm over time.
◦ negates the principle goal of creating the most value for the shareholders.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by joe on Apr 25, 2021

ambernicolefink

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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joe

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

olderstudent

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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