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Falty Ltd. is evaluating a project to expand its existing operations. The CFO has estimated that IRR of the project is of 10.5%. Faulty's cos

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Falty Ltd. is evaluating a project to expand its existing operations. The CFO has estimated that IRR of the project is of 10.5%. Faulty's cos of debt is 7%, its cost of equity is 15%, and its tax rate is 30%. The target debt ratio (Debi(Debt+Equity) for the project, in market values, 0.5. The firm should Multiple Choice reject the project irrespctive of whether is financed with debt or equity accept the project irrespctive of whether is financed with debt or equity accept the project only if it is funded with debt. accept the project only if it is funded with equity

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