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Additional, the company is split into a few divisions which have diverse capital composition and operate in different respective industries, so using unified discounted amount for every division may not correctly lower price the funds flows of various jobs.
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Midland Vitality Methods has diversified small business units, that happen to be susceptible to different challenges; if the company makes use of unified hurdle rate then the corporation will fall short to take into account challenges of different business enterprise models since the hazard profile in the divisions are unique from one another, Hence the Corporation shall consider to use distinct rates for that analysis of different financial commitment proposals.
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