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A proposed project has a positive NPV when evaluated at thecompany cost of capital. If the firm employs debt in its capitalstructure, will the project

A proposed project has a positive NPV when evaluated at thecompany cost of capital. If the firm employs debt in its capitalstructure, will the project remain acceptable after evaluation withthe WACC?

A)

there will be no change in the project's NPV.

B)

the project may now become unacceptable.

C)

Yes, using the WACC will increase the NPV.

D)

No, using the WACC will decrease the NPV.

Which one?

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