The discount rate for a project should equal the:
Select one:
a. cost of equity of the firm.
b. expected return on a financial asset of comparable risk.
c. market rate of return.
d. firm’s weighted average cost of capital.
e. discount rate used on the firm’s last profitable project
Expert Answer
The discount rate for a project should equal the cost of equity of the firm | |||||||
Option A is correct | |||||||