A firm should never undertake an investment if accepting the project would lead to an increase in the firm's cost of capital.

Name: A firm should never undertake an investment if accepting the project would lead to an increase in the firm's cost of capital.
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Question

Quizplus · Accepted Answer

Accepting a project may lead to an increase or decrease in the firm's cost of capital, depending on the specific project and its impact on the company's risk and profitability. Therefore, this statement is false.

A Firm Should Never Undertake an Investment If Accepting the Project