What types of projects will this company over invest

Reference no: EM13802003

A corporation's policy manual states: "Our company's policy is to use 12%, which is our cost of capital, as the discount rate for NPV calculations on all projects considered for investment."

What is wrong with this policy? In what types of projects will this company over invest? In what types of projects will it under invest?

Reference no: EM13802003

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