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    Cost of capital for projects with different risks

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    Suppose a firm estimates its cost of capital for the coming year to be 10%. What are reasonable costs of capital for evaluating average risk projects, high risk projects and low risk projects.

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    https://brainmass.com/business/working-capital-management/72200

    Solution Preview

    Suppose a firm estimates its cost of capital for the coming year to be 10%. What are reasonable costs of capital for evaluating average risk projects, high risk projects and low risk projects?

    The cost of capital of 10% is ...

    Solution Summary

    The solution identifies reasonable costs of capital for evaluating average risk projects, high risk projects and low risk projects.

    $2.19