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The cost of capital for a new project Multiple Cholce Is determined by the overall risk level of the firm. Is dependent upon the source

The cost of capital for a new project Multiple Cholce Is determined by the overall risk level of the firm. Is dependent upon the source of the funds obtalned to fund that project. Is dependent upon the firm's overall capltal structure should be applied as the discount rate for all other projects considered by the firm depends upon how the funds ralsed for that project are going to be spent

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