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Your mom is the CEO of her own company consisting of 10 coffee shops. The WACC for her current company is 8%. She is considering

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Your mom is the CEO of her own company consisting of 10 coffee shops. The WACC for her current company is 8%. She is considering diversifying into a new line of business that is more risky than her coffee shop business. When evaluating the new business, she should find the NPV using Multiple Choice project discount rate that is less than 8x arate based on the company's current bet a rate appropriate for the risk level of the project, which would be greater than 8% the market rate of return the weighted average cost of capital

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