Same discount rate to evaluate all projects

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Reference no: EM131628986

Using the same discount rate to evaluate all projects can lead to:

1) Rejection of low risk projects that should be accepted.

2) Acceptance of high risk projects that should be rejected.

3) Control of efforts by employees with a vested interested in a project to manipulate the discount rate.

4) All of the above.

Reference no: EM131628986

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