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When Using the Pure Play Approach,a Firm Is Seeking a Rate

Question 9

Multiple Choice

When using the pure play approach,a firm is seeking a rate of return which:


A) will cause a project to have a positive net present value
B) is applicable to the risk level of the investment under consideration
C) is lower than its own cost of capital
D) matches the expected internal rate of return of the investment being considered
E) is based on book values rather than market values

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