9. A company increases its cost of capital from 15% to 20%. What impact does this have

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9. A company increases its cost of capital from 15% to 20%. What impact does this have on a project it is considering?

& Increases the NPV of the project

& Reduces the NPV of the project

& No impact on the NPV of the project

& Increases the life of the project

& Reduces the initial capital needed to fund the project

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