Question: Il . Evaluate this project from the firm's standpoint. Does it make sense?lll . In general, when would you use the cost of equity as

Il. Evaluate this project from the firm's standpoint. Does it make sense?lll. In general, when would you use the cost of equity as your discount rate/benchmark?IV. In general, when would you use the cost of capital as your benchmark?V. Assume, for economies of scale, that this project is going to be financed entirely with debt
What would you use as your cost of capital for evaluating this project?Il. Evaluate this project from the firm's standpoint. Does it make sense?lll. In general, when would you use the cost of equity as your discount rate/benchmark?IV. In general, when would you use the cost of capital as your benchmark?V. Assume, for economies of scale, that this project is going to be financed entirely with debt
What would you use as your cost of capital for evaluating this project?

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