Which of the Following Informational Updates Would Prompt a Financial

Multiple Choice

Which of the following informational updates would prompt a financial manager to use a higher cost of capital to analyze a project?

A) Sales estimates from the marketing department have been less accurate of late.
B) The treasurer has recently indicated that the firm will increase its use of debt financing.
C) The treasurer has recently indicated that the firm will decrease its use of debt financing.
D) Recent estimates indicate the project has a greater percentage of fixed costs than previously thought.