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2. (3 points) Firms should use their weighted average cost of capital (WACC) when they are funding their capital projects with a variety of sources.

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2. (3 points) Firms should use their weighted average cost of capital (WACC) when they are funding their capital projects with a variety of sources. However, when the firm plans on using only debt or only equity to fund a particular project, it should use the after-tax costs of the specific source of capital to evaluate the project. True or False, Explain

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