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A firm is considering an investment in a project whose risk is greater than the current risk of the firm, based on any method for

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A firm is considering an investment in a project whose risk is greater than the current risk of the firm, based on any method for assessing risk. In evaluating this asset, the decision maker should a. Increase the IRR of the asset to reflect the greater risk. b. Increase the NPV of the asset to reflect the greater risk. c. Reject the asset, since its acceptance would increase the firm's risk. d. Increase the cost of capital used to evaluate the project to reflect the project's higher risk. e. None of the above

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