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  3. Study Set
    Fundamentals of Corporate Finance Study Set 7
  4. Exam
    Exam 8: Net Present Value and Other Investment Criteria
  5. Question
    A Project's Opportunity Cost of Capital Is
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A Project's Opportunity Cost of Capital Is

Question 2

Question 2

Multiple Choice

A project's opportunity cost of capital is:


A) the return that shareholders could expect to earn by investing in the financial markets.
B) the return earned by investing in the project.
C) equal to the average return on all company projects.
D) designed to be less than the project's IRR.

Correct Answer:

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