Question: If a project you are evaluating is riskier than average for your company, should you use WACC as your discount rate, adjust WACC up, or

If a project you are evaluating is riskier than average for your company, should you use WACC as your discount rate, adjust WACC

If a project you are evaluating is riskier than average for your company, should you use WACC as your discount rate, adjust WACC up, or adjust WACC down? Which of the following projects produce the largest NPV when a high discount rate is used? Those projects that have large cash inflows in earlier years Those projects that have large cash inflows in later years Those projects that have large cash inflows are evenly distributed throughout the life of the investment d. The acceptability of an investment is not affected by discount rates

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