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The cost of capital for a new project: should be applied as the discount rate forall other projects considered by the firm. is determined by

The cost of capital for a new project:

should be applied as the discount rate forall other projects considered by the firm.

is determined by the overall risk level of the firm.

is dependent upon the source of the funds obtained to fund that project.

is dependent upon the firm's overall capital structure.

depends upon how the funds raised for that project are going to be spent.

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