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Assume a firm utilizes its WACC as the discount rate for every capital project it implements. Accordingly, the firm will tend to: Group of answer

Assume a firm utilizes its WACC as the discount rate for every capital project it implements. Accordingly, the firm will tend to:

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accept all positive net present value projects.

increase the average risk level of the company over time.

reject all high-risk projects.

reject all negative net present value projects.

favor low-risk projects over high-risk projects.

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