Question: When using the net present value method to evaluate capital spending with borrowed funds, the discount rate should be: A) higher than the markup percentage

When using the net present value method to evaluate capital spending with borrowed funds, the discount rate should be: A) higher than the markup percentage on merchandise if the business is a merchandising business. B) higher than the rate of return on net sales. C) higher than the gross margin percentage if the business is a merchandising business. D) higher than the interest rate on the loan

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