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Explain why the firm value will decrease. Suppose a firm's WACC is 5%. If the firm invests $10,000 this year in a typical project that

image text in transcribed Explain why the firm value will decrease.

Suppose a firm's WACC is 5%. If the firm invests $10,000 this year in a typical project that pays $10,300 in expectation in the next year, how will the firm value change due to the new investment? (5 points) a. Increase b. Not change c. Decrease

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