Question
Problems with using the same company-wide cost of capital for all projects potentially include: A. biasing project selection toward high risk, high return projects B.
Problems with using the same company-wide cost of capital for all projects potentially include:
A. biasing project selection toward high risk, high return projects
B. rejection of worthwhile low risk projects
C. spending an unjustified amount of managerial time and effort justifying a lower cost of capital so that pet projects will be accepted
D. all of the above
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
8th edition
134730364, 978-0134730363
