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  3. Study Set
    Intermediate Financial Management Study Set 2
  4. Exam
    Exam 13: Capital Budgeting: Cash Flows and Risk
  5. Question
    When Risk Is Explicitly Accounted for in Capital Budgeting, a Project
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When Risk Is Explicitly Accounted for in Capital Budgeting, a Project

Question 4

Question 4

True/False

When risk is explicitly accounted for in capital budgeting, a project will be acceptable to a firm if its IRR (or modified IRR) is greater than the firm's weighted average cost of capital.

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