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If a firm uses its WACC as the discount rate for all of the projects it undertakes then the firm will tend to do all
If a firm uses its WACC as the discount rate for all of the projects it undertakes then the firm will tend to do all of the following except: |
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Reject some positive net present value projects. |
Lower the average risk level of the firm over time. |
Increase the firms overall level of risk over time. |
Accept some negative net present value projects. |
Favor high risk projects over low risk projects. |
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