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Question
Alio e Olio has restaurants throughout the United States, Canada, and Western Europe. It is considering a proposal to open several restaurants in major cities of India and China.A) Alio e Olio should use the company's overall WACC to evaluate all proposals.
B) Alio e Olio should use a lower discount rate for new ventures to be sure it does not miss out on opportunities.
C) Alio e Olio should evaluate projects in different regions at discount rates that reflect the risk inherent in those projects.
D) Alio e Olio should adjust the discount rate for specific regions to reflect the specific sources of funding used.
Answer
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Related questions
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