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You are in the financial planning and analysis department evaluating a new capital project. The project is considered to have a high level of risk.
You are in the financial planning and analysis department evaluating a new capital project. The project is considered to have a high level of risk. The company's weighted cost of capital is 11.5%. When preparing an NPV on the project you would use a required rate of return:
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Equal to the weighted cost of capital
Below the weighted cost of capital
Above the weighted cost of capital
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