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What the cost of capital is for the company

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Reference no: EM131986999

When a company has a required rate of return it needs to make more than that so that it can repay its investors. This also means that the project will have a positive net present value, and that this is a project the company should proceed with. The required rate of return is based on understanding what the cost of capital is for the company. With this in mind, do you think it wise that a project is approved if the NPV is not positive?

Reference no: EM131986999

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