MCQOPTIONS
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| 1. |
A single, overall cost of capital is often used to evaluate projects because: |
| A. | it avoids the problem of computing the required rate of return for each investment proposal. |
| B. | it is the only way to measure a firm's required return. |
| C. | it acknowledges that most new investment projects have about the same degree of risk. |
| D. | it acknowledges that most new investment projects offer about the same expected return. |
| Answer» B. it is the only way to measure a firm's required return. | |