Find is possible that making investment with expected return

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Suppose that your company's weighted-average cost of capital is 9 percent. Your company is planning to undertake a project with an internal rate of return of 12%, but you believe that this project is not a good investment for the firm.

Question 1: Is it possible that making investments with expected returns higher than your company's cost of capital will destroy value? If so, how?

Reference no: EM132590030

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