Which of the following statements is false regarding the, Ask an Expert

Accounting

Which of the following statements is false regarding the interest rate used in NPV calculations?

a. Some companies use their cost of capital as the discount rate.
b. The interest rate used may be higher or lower than the investment's actual internal rate of return.
c. It should be equal to the maximum required rate of return needed to make the investment profitable.
d. The interest rate used may be adjusted for uncertainty.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91782142

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