Your companys weighted-average cost of capital is 11, Ask an Expert

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Your company's weighted-average cost of capital is 11 percent. It is plan ning to undertake a project with an internal rate of return of 14 percent, but you believe this project is not a wise investment. What logical arguments would you use to convince your boss to forego the project despite its high rate of return? Is it possible that making investments with returns higher than the firm's cost of capital will destroy value? If so, how?

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Financial Management, Finance

Category:- Financial Management
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