Question: What is a primary caution when using a company's cost of capital as the discount rate to evaluate a capital project? Evaluation typically rejects high-risk

 What is a primary caution when using a company's cost of

What is a primary caution when using a company's cost of capital as the discount rate to evaluate a capital project? Evaluation typically rejects high-risk projects. The cost of capital may need to be risk adjusted. Low-risk projects are favored. Opportunity costs can be distorted

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