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If You Discount a Project's Expected Future Unlevered Aftertax Cash

Question 10

Multiple Choice

If you discount a project's expected future unlevered aftertax cash flows by the ________ and then subtract the initial investment you will calculate the:


A) cost of capital for the unlevered firm; adjusted present value.
B) cost of equity capital; project NPV.
C) weighted cost of capital; project NPV.
D) cost of capital for the unlevered firm; all-equity net present value.
E) cost of equity capital for the levered firm; all-equity net present value.

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