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A very large organization is financed by both debt and equity.

A very large organization is financed by both debt and equity. It evaluates all projects on the basis of their net present value (NPV) using an organization wide weighted average cost of capital as the discount rate.

For a small project, which TWO of the following would affect the project's cash flows AND the discount rate?

A.

Taxation rates

B.

Inflation rates

C.

Depreciation rates

D.

Changes in working capital

E.

The project's terminal value

CIMA P2 Summary

  • Vendor: CIMA
  • Product: P2
  • Update on: Jul 29, 2025
  • Questions: 202
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