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You are the CFO of a company. Your assistant has just provided you with the estimated (1) cash flows and (2) opportunity cost of capital
You are the CFO of a company. Your assistant has just provided you with the estimated (1) cash flows and (2) opportunity cost of capital for a project. Unfortunately, you notice that the opportunity cost of capital is overestimated (i.e., the appropriate cost of capital should be lower than the estimate). How would the project internal rate of return (IRR) change after you correct the error in the estimation of the project cost of capital? You should explain why
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