Shareholders in a leveraged firm might wish to accept a negative net present value project if:
A) it lowers the risk level of the firm.
B) it lowers the variance of the returns on the firm's assets.
C) it increases the standard deviation of the returns on the firm's assets.
D) it decreases the risk that a firm will default on its debt.
E) it diversifies the cash flows of the firm.
Correct Answer:
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