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Continuing with same project, the hospital's policy is the account for differential risk by increasing...

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Finance

Continuing with same project, the hospital's policy is the account for differential risk by increasing or decreasing the cost of capital by 3%. That is, for risker projects they add 3% and for less risky projects they substract 3%. They believe this project is riskier than normal projects for the hospital. In the base case scenario, how does this affect the forecasted NPV for the project?

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