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The cost of capital for a project should: answer: c a. meet or exceed the internal rate of return of the project. b. be adjusted
The cost of capital for a project should: answer: c
a. meet or exceed the internal rate of return of the project.
b. be adjusted based on the size of the project.
c. be adjusted based on the risk of the project.
d. remain constant even if a decision on accepting the project is delayed for two years.
e. never exceed the cost of capital for the overall firm.
I thought that (c) and (e) are correct. Why is (e) wrong?
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