Solved: Discount rate to use project evaluation, Finance Basics

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Discount rate to use project evaluation

Question: For a company which earns 10 Percent on its call account deposits,borrows longterm at 12 percent and its main investments are in the form of call account deposits, what will be the best DISCOUNT RATE to use in project evaluation NPV,as an alternative to using WACC? How can such a rate be justified?

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Finance Basics: Discount rate to use project evaluation

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