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Austin Inc.'s management is evaluating a potential investment project that is expected to involve more risk than a typical project. Management has decided to set
Austin Inc.'s management is evaluating a potential investment project that is expected to involve more risk than a typical project. Management has decided to set the hurdle rate on this investment at 12% instead of the typic 10% rate. If all else remains constant, this increase in the hurdle rate will cause the net present value calculation to increase. The answer cannot be determined with the information provided. decrease. remain the same
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