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Your company has outstanding debt with an effective interest rate of 8% p.a., which you can repay at any time. The effective interest rate on
Your company has outstanding debt with an effective interest rate of 8% p.a., which you can repay at any time. The effective interest rate on U.S. Treasury bonds is currently 4% p.a. You currently have excess cash that you would like to invest in a new, risk-free project. What opportunity cost of capital rate should you use to evaluate this new risk-free investment project
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