When determining the real interest rate, what happens to businesses that find themselves with unfunded capital projects whose rate of return exceeds the cost of capital?

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QUESTION:

When determining the real interest rate, what happens to businesses that find themselves with unfunded capital projects whose rate of return exceeds the cost of capital?


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Book Name:

Fundamentals of Corporate Finance, 4th Edition

Author:

Robert Parrino, David S. Kidwell, Thomas Bates, Stuart L. Gillan

Textbook Solution:

Solution Available in MS-Word File.

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