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    Question

    The discount factor used to appraise capital investment

    decisions is a measure of:
    A The opportunity cost of capital of business Correct Answer Incorrect Answer
    B The current inflation rate Correct Answer Incorrect Answer
    C The current interest rate Correct Answer Incorrect Answer
    D The opportunity cost of capital of all businesses in the same industry Correct Answer Incorrect Answer

    Solution

    It is the opportunity cost of capital of the business

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