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XYZ corporation is considering a project that has an IRR (expected return) of 15% while the weighted average cost of capital for XYZ is 10%.

XYZ corporation is considering a project that has an IRR (expected return) of 15% while the weighted average cost of capital for XYZ is 10%. Assuming the project is the same level of risk as the company. XYZ should

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a.invest in the project because the expected return is less than the required return.

b.invest in the project because the expected return is greater than the required return.

c.not invest in the project because the expected return is greater than the required return.

d.not invest in the project since the expected return is so much higher than the WACC.

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