Question: An appropriate guideline to adopt when determining the valuation formula to use is: Multiple Choice a) never use the APV approach. b) use APV if

An appropriate guideline to adopt when determining the valuation formula to use is:

Multiple Choice

a) never use the APV approach.

b) use APV if the project is far different from scale enhancing.

c) use WACC if the project is close to being scale enhancing.

d) never use the APV approach and use WACC if the project is close to being scale enhancing.

e) use APV if the project is far different from scale enhancing and use WACC if the project is close to being scale enhancing.

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