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A company is considering a project with a beta of 0.5 while the companys beta is 2.0 . How should the company adjust its WACC

A company is considering a project with a beta of 0.5 while the companys beta is 2.0. How should the company adjust its WACC to reflect the riskiness of the project?

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Increase its WACC.

Decrease its WACC.

No adjustment on its WACC is needed.

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