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Which of the following statements are true for a company that is usually evaluating several projects? The opportunity cost of capital: Equals the interest rate
Which of the following statements are true for a company that is usually evaluating several projects?
The opportunity cost of capital:
Equals the interest rate at which the company can borrow. Select False "True"
Depends on the risk of the cash flows to be valued. Select True "False"
Depends on the rates of return that shareholders can expect to earn by investing on their own in projects of similar risk Select True "False"
Equals zero if the firm has excess cash in its bank account and the bank account pays no interest. Select False "True"
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