Suppose that your companys weighted average cost of capital is 11 percent. Your company is...
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Finance
Suppose that your companys weighted average cost of capital is 11 percent. Your company is planning to undertake a project with an internal rate of return of 14 percent, but you believe that this project is not a wise investment for the firm. What logical arguments might you use to convince your boss to forego the project despite its high rate of return? Is it possible that making investments with expected returns higher than your companys cost of capital will destroy value? If so, how? Min 3 page writing reports
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