The Appropriate Discount Rate That Analysts Use in Computing the Present

The appropriate discount rate that analysts use in computing the present value of future cash flows is comprised of which of the following?

A) an increase reflecting the inflation expected to occur over the life of the project.
B) a risk factor reflecting the riskiness of the project
C) a pure rate of interest reflecting the productive capability of capital assets
D) all of the above.

Correct Answer:

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