Use higher cost of capital to analyze project

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Which of the following informational updates would prompt a financial manager to use a higher cost of capital to analyze a project?

A) Sales estimates from the marketing department have been less accurate as of late

B) Recent estimates indicate that a project has a greater percentage of fixed costs than previously thought.

C) The treasurer has recently indicated that the firm will increase its use of debt financing.

D) The treasurer has recently indicated that the firm will decrease its use of debt financing.

Reference no: EM132050154

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