If the Company Cost of Capital Is 20% and a Proposed

question 43

Multiple Choice

If the company cost of capital is 20% and a proposed project's cost of capital is 15%,then discounting the projects' cash flows at 20% would:

• A) determine where the project plots in relation to the security market line.
• B) make the project look more attractive.
• C) be correct from a theoretical perspective.
• D) be incorrect.

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