Question: 1. Suppose that you are evaluating three R&D projects within your division of a technology firm. Two projects involve follow-on investments that will use proven

1. Suppose that you are evaluating three R&D projects within your division of a technology firm. Two projects involve follow-on investments that will use proven technology, while the third involves an unproven technology. How should you evaluate the funding decisions for these three projects?

2. Can management have a significant influence on on its cost of capital? Why?

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