Question: If your project has a lower beta than the overall firm then you Question 16 options: A) should use WACC to discount your CFFAs. B)

If your project has a lower beta than the overall firm then you

Question 16 options:

A) should use WACC to discount your CFFAs.

B) should use a pure play approach if available firms.

C) should lower your WACC to adjust for the risk of the project.

D) should increase your WACC to adjust for the risk of the project.

E) Both (B) and (C) are correct.

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