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As the explicit risk of a project increases, the risk adjusted average cost of capital should be A) Increased, resulting in a greater NPV B)

As the explicit risk of a project increases, the risk adjusted average cost of capital should be

A) Increased, resulting in a greater NPV

B) Decreased, resulting in a greater NPV

C) Increased, resulting in a lower NPV

D) Decreased, resulting in a lower NPV

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