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A firm that uses it WACC as a cutoff without considering project risk : I - Tends to become less risky over time. II -
A firm that uses it WACC as a cutoff without considering project risk :
I - Tends to become less risky over time.
II - May falsely accept negative NPV projects over time.
III- Likely will see its WACC rise over time.
Select one
A) I, II, and III
B) III only
C) I and II only
D) II only
E) II and III only
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