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Cashpoor is faxed with a project but has no cash and and will borrow the $500 needed for theproject from a bank. Assume that the
Cashpoor is faxed with a project but has no cash and and will borrow the $500 needed for theproject from a bank. Assume that the bank witll carge interest to commensurate with the projects risk If Cashpoors managers are rewarded on the basis of earnings per share, will they undertake this project?
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