A corporation’s policy manual states: Our company’s policy is to use 12%, which is our cost of capital, as the discount rate for NPV…
A corporation’s policy manual states: “Our company’s policy is to use 12%, which is our cost of capital, as the discount rate for NPV calculations on all projects considered for investment.”
1. What is wrong with this policy?
2. In what types of projects will this company overinvest?
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Now3. In what types of projects will it underinvest?