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Corporate Structures and Ownership

Quick practice

Question 1 of 5

Which of the following is the least accurate about a project's required rate of return?

A

If IRR is greater than the required rate of return, the project is to be accepted.

B

It can be higher or lower than the firm’s cost of capital, depending on the risk of the project.

C

It can be assumed as equal to the risk-free rate of the economy.

D

NA

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