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    Fundamentals of Corporate Finance Study Set 24
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    Exam 10: Project Analysis
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    What Effect Will a Reduction in the Cost of Capital
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What Effect Will a Reduction in the Cost of Capital

Question 1

Question 1

Multiple Choice

What effect will a reduction in the cost of capital have on the accounting break-even level of revenues?


A) it raises the break-even level.
B) it reduces the break-even level.
C) it has no effect on the break-even level.
D) this cannot be determined without knowing the length of the investment horizon.

Correct Answer:

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