Your company's weighted-average cost of capital is 11 percent. Your company is planning to undertake a project with an internal rate of return of 14 percent, but you believe that this project is not a good investment for the firm. What logical arguments would you use to convince your boss to forgo the project despite its high rate of return? Is it possible that making investments with returns higher than the firm's cost of capital will destroy value? If so, how?

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