Evaluate most projects of average risk

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The Cowboys Christmas Company uses a required return of 11.3% to evaluate most projects of average risk. Suppose the company is looking at a new project that is lower-than-average-risk, and the CEO thinks the discount rate should be risk-adjusted. What effect will this have on the project's NPV?

A) Decrease NPV B) No effect on NPV C) Increase NPV D) NPV will double

Reference no: EM13814582

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