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7. A firm may accept a project even if the acceptance would cause an increase in...

7. A firm may accept a project even if the acceptance would cause an increase in the firms cost of capital.
8. Suppose a projects WACC is greater than its IRR, then it’s NPV might still be positive.
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7. A firm may accept a project even if the acceptance would cause an increase in the firms cost of capital.

Statement is True

Because project is acceptable to a level where Cost of capital is less than the cost of capital

8. Suppose a projects WACC is greater than its IRR, then it’s NPV might still be positive.

Statement is false

If WACC is greater than IRR the NPV will be negative and project is not acceptable

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