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R Projects 1,2, 3, and4 Your answer If a firm is evaluating a new project that has less risk than the average project risk for

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R Projects 1,2, 3, and4 Your answer If a firm is evaluating a new project that has less risk than the average project risk for the company, which of the following statements most correctly identifies the possible outcome if they use the firm-level WACC as the discount rate? A Based on the calculated NPV for the project, the company might reject the project even though the projected cash flows B Based on the caleulated NPV for the project, the company might accept the project even though the projected cash flows C Based on the calculated NPV fot the project, it is equally likely that the company might reject the project even though it represent a positive NPV at the true risk-adjusted discount rate. represent a negative NPV at the true risk-adjusted discount rate. should have been accepted or accept the project even though it should have been rejected based on the NPV at the true risk-adjusted discount rate. D Based on the calculated NPV for the project, the firm would always accept the correct projects and reject the correct projects Your ansrer

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