Question: when evaluating a project, the discount rate to be used should be the: a. cost of debt only b. capital structure with which the project

when evaluating a project, the discount rate to be used should be the:

a. cost of debt only

b. capital structure with which the project was financed

c. cost of preferred stock only

d. average cost of funds associated with the firm's capital structure

e. cost of equity only.

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