Question: For self - constructed assets, if no specific money is borrowed to construct the asset, but other debt is outstanding, the interest rate used to

For self

-

constructed assets, if no specific money is borrowed to construct the asset, but other debt is outstanding, the interest rate used to capitalize interest is

Multiple choice question.

the weighted

-

average rate on all loans outstanding.

the risk

-

free rate on the loans outstanding.

zero.

the incremental borrowing rate.

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