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Suppose that a firm has a 10% cost of capital and recently completed Project A. Project A had a 15% IRR. The firm can reinvest

Suppose that a firm has a 10% cost of capital and recently completed Project A. Project A had a 15% IRR. The firm can reinvest the cash flows from Project A into a new positive NPV project. We know that the new project will have at least a _____ rate of return.

 

15%

10%

0%

None of the above

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