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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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