Question
Your firm is considering a new project that is riskier than projects it has taken in the past. Your firms weighted average cost of capital
Your firm is considering a new project that is riskier than projects it has taken in the past. Your firms weighted average cost of capital is K. when computing the new projects NPV, which of the following is correct?
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You should use K for the discount rate
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You should use a discount rate greater than K
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You should use a discount rate less than K
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The Socionomic Theory Of Finance
Authors: Robert R. Prechter
1st Edition
0977611256, 978-0977611256
