If a company with low credit rating invests in a low-risk project,it should discount the cash flows at a correspondingly high cost of capital.

Name: If a company with low credit rating invests in a low-risk project,it should discount the cash flows at a correspondingly high cost of capital.
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If a company with low credit rating invests in a low-risk project, it should discount the cash flows at a correspondingly low cost of capital to reflect the low risk associated with the project.

If a Company with Low Credit Rating Invests in a Low-Risk