The cost of capital: A) will decrease as the risk level of a firm inc

The cost of capital:

A) will decrease as the risk level of a firm increases.
B) is primarily dependent on the source of the funds used in a project.
C) implies that a project will produce a positive net present value only when the rate of return on the project is less than the cost of capital.
D) remains constant for all projects sponsored by the same firm.
E) depends on how the funds are going to be utilized.

ANSWER

E