Question

question 4 (5 points)
listen
a firm should never accept a project if its acceptance would lead to an increase in the firms cost of capital (its wacc).
true
false

Explanation:

A project's acceptance is determined by its NPV (Net Present Value) being positive, comparing its return to the firm's WACC. A project might have a return higher than its own cost of capital (relevant for project evaluation) even if the firm's overall WACC increases. So the statement is false as the decision isn't solely based on WACC increase.

Answer:

False