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Kate is the CFO of a major firm and has the job of assigning discount rates to each project under consideration. Kate's method of doing this is to assign an incrementally higher rate as the risk level of the project increases and a lower rate as the risk level declines. Kate is applying the ________ approach.

Respuesta :

Answer: Subjective approach

Explanation: Kate the chief financial officer of her firm is applying Subjective approach to make decision in her firm.

A Subjective approach in decision making involves allowing emotions and personal bias to influence decision making process. Kate is varying the interest rate, giving a lower rate to those who she believes can easily pay the loans and higher loan interest to those she feel can't pay up.

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