Question: 1. Extensions of the Basic Model How would you estimate the cost of capital for a project if its risk is different from the rest

1. Extensions of the Basic Model How would you estimate the cost of capital for a project if its risk is different from the rest of the company? Similarly, how would you estimate the cost of capital for a project when the company has debt in its capital structure? When estimating the cost of debt, does it make a difference if the company’s debt is privately or publicly held?

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