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(Solved): If a firm uses the same company cost of capital for evaluating all projects, which situation(s) will ...



If a firm uses the same company cost of capital for evaluating all projects, which situation(s) will likely occur? 1) The firm will reject good low-risk projects. 2) The firm will accept poor high-risk projects. 3) The firm will correctly accept projects with average risk. Question 4Answer a. 1 only b. 1 and 2 only c. 1,2, and 3 d. 2 only



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