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Which of the following statements is INCORRECT? 1. An increase in NWC is an incremental cash flow. 2. The after-tax cost of debt should be
Which of the following statements is INCORRECT?
1. An increase in NWC is an incremental cash flow.
2. The after-tax cost of debt should be used in WACC because interest is tax-deductible.
3. The AAR is not a true rate of investment return.
4. Relevant cash flows in capital budgeting include all interest expenses.
5. The slope of the security market line is the same as market risk premium.
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