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in Business Studies by (73.7k points)

A single, overall cost of capital is often used to evaluate projects because: 

a) it avoids the problem of computing the required rate of return for each investment proposal. 

b) it is the only way to measure a firm's required return. 

c) it acknowledges that most new investment projects have about the same degree of risk. 

d) it acknowledges that most new investment projects offer about the same expected return. 

1 Answer

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a) it avoids the problem of computing the required rate of return for each investment proposal.

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