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Determining the discount rate a. What discount rate did you use for each project? Why?...

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Accounting

Determining the discount rate a. What discount rate did you use for each project? Why? b. The case states that discount rate is "set by capital budgeting committee in consultation with corporate treasurer." Do you believe this is an appropriate practice in terms of the theories in corporate finance? Explain in detail. Should project managers or brand managers suggest a discount rate for each project? New Heritage Doll Company: Capital Budgeting Exhibit 2 Selected Operating Projections for Design Your Own Doll New Heritage Doll Company: Capital Budgeting Exhibit 2 Selected Operating Projections for Design Your Own Doll Exhibit 1 Selected Operating Projections for Match My Doll Clothing Line Expansion (\$ in 40% corporate tax rate 8.4% medium risk discount rate Exhibit 2 Selected Operating Projections for Design Your Own Dall \$ $ in thousands) 9.0% high risk discount rate

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