firm should never accept a project if its acceptance would lead to an increase in the firm's cost of capital

Question

Quizplus · Accepted Answer

Accepting a project may lead to an increase in the firm's cost of capital, but this should be evaluated against the potential increase in value or profitability of the project. It ultimately depends on the specific details and circumstances of the project and how it fits into the firm's overall strategy and financial goals.

Firm Should Never Accept a Project If Its Acceptance Would