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Your firm has the opportunity to invest $20 million in a new project. The interest rate on the firms debt is 7% and the cost

Your firm has the opportunity to invest $20 million in a new project. The interest rate on the firms debt is 7% and the cost of equity is 14%. The cost of capital for the project depends on whether the firm finances the project with new debt or new equity. True or False? and Why?

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