Suppose a firm uses a con

Suppose a firm uses a con

Suppose a firm uses a constant WACC (hurdle rate) in determining the value of capital budgeting projects rather than adjusting for project risk. Choose the statement which accurately completes this sentence describing the possible outcomes or the firm. The firm will tend toa) reject profitable low risk projects and reject unprofitable high risk projectsb)become less risky over timec)reject profitable, low risk projects and accept unprofitable high risk projectsd)accept profitable low risk projects and accept unprofitable high risk projects

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