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Which principle of capital budgeting emphasizes that financing costs should be reflected in a project's required rate of return?
  • a)
    Principle 1
  • b)
    Principle 3
  • c)
    Principle 4
  • d)
    Principle 5
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which principle of capital budgeting emphasizes that financing costs s...
Principle 5 of capital budgeting emphasizes that financing costs should be reflected in a project's required rate of return. This principle recognizes that a project's expected rate of return should account for the cost of capital and potential risks associated with financing.
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Which principle of capital budgeting emphasizes that financing costs should be reflected in a project's required rate of return?a)Principle 1b)Principle 3c)Principle 4d)Principle 5Correct answer is option 'D'. Can you explain this answer?
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