Company K is doing a discounted cash flow analysis on a project that involves building...
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Company K is doing a discounted cash flow analysis on a project that involves building a new factory to produce a new line of products. They just discovered that a competitor is also planning to build a factory to make a new product that will compete with Company K's new product. The CFO of Company K has decided that this increases the riskiness of the project; therefore, what is she likely to do with respect to the project's WACC? Multiple Choice o Lower it Lower it 0 Raise it Raise it Make no change 0 Make no change
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