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you are considering 2 projects. project 1 involves buying new equipment to expand your existing product line. project 2 involves investing in technology and equpment

you are considering 2 projects. project 1 involves buying new equipment to expand your existing product line. project 2 involves investing in technology and equpment to launch a brand new, cutting-edge product. Your company has a weighted average cost of capital of 12%. which of the following is the most correct answer regarding your choice of discount rates when calculating the npv of each project?

you should use a higher discount rate for project 1

you should use a higher discount rate for project 2

You should use your companys wacc as the discount rate for both investments

you should not consider launching something as risky as project 2

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