If a company with a low credit rating invests in a low-risk project,it should discount the cash flows at a relatively high cost of capital.

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If a company with a low credit rating invests in a low-risk project, it may still be able to finance the project at a relatively low cost of capital due to the low risk associated with the project. The company's credit rating may impact the cost of capital for more risky projects, but not necessarily for low-risk projects. Therefore, the cash flows should be discounted at a relatively low cost of capital.

If a Company with a Low Credit Rating Invests in a Low-Risk