Overestimate the value of high-risk projects

Reference no: EM13201105

Cost of Capital Suppose a firm uses its company cost of capital to evaluate all projects. Will it underestimate or overestimate the value of high-risk projects?

Reference no: EM13201105

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Overestimate the value of high-risk projects : Cost of Capital Suppose a firm uses its company cost of capital to evaluate all projects. Will it underestimate or overestimate the value of high-risk projects?

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