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A firm is considering a new project that requires a lot of upfront capital investment. It will need to issue new equity. This will dilute

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A firm is considering a new project that requires a lot of upfront capital investment. It will need to issue new equity. This will dilute existing shareholders and share prices would be lower for a while. Should the fall in the equity price be part of the project's cash flow projections? Select one: A. No. We separate the investment decision from the financing decision. B. Yes. Without the project, there would be no need to issue equity. C. That depends on the cost of capital used in discounting the project

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