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If a company uses its WACC as the discount rate for all of the projects it undertakes then the company will tend to: Multiple Choice

If a company uses its WACC as the discount rate for all of the projects it undertakes then the company will tend to:

Multiple Choice

  • reject all negative net present value projects.

  • accept all positive net present value projects.

  • reject all high-risk projects.

  • favor low-risk projects over high-risk projects.

  • increase the average risk level of the company over time.

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