Which would be impacted if the discount rate were raised

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Question 1: A CFO of a start-up company is evaluating the timing of a significant capital expenditure. He was previously at a mature company that used a discount rate of 8% so he used the same rate at the start-up company. Which of the following would be impacted if the discount rate were raised to reflect the risk of the start-up company?

1. Internal rate of return

2. Payback period

3. Return on investment

4. Net present value

Reference no: EM132581887

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