Across as an average-risk investment project

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Reference no: EM13948536

British quince comes across as an average-risk investment project that offers rate of return of 9.5%. This is director’s notes that the company can easily borrow the required investment at 7%. It's simple, he says. If the bank lends us. Money at 7%, then our cost of capital must be 7%. The project return is higher than the cost of capital, so let move ahead. How would you respond?

Reference no: EM13948536

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