re wod this and give different example - When to Use Different Costs of Capital: Use different costs of capital when divisions have different risk levels. For example, a tech division might be riskier than a utility division, so it should have a higher cost of capital. Impact of Using Overall Firm WACC: If the firm-wide WACC is used for all divisions, riskier divisions might get more investment because their projects appear more attractive, while safer divisions might miss out on good projects because their lower risk isn't properly accounted for. Challenges in Estimating Division Costs: Finding similar companies for comparison can be tough, and internal financial data might not clearly show each division's risk. Techniques for Estimation: Pure-Play Method: Look at similar companies to gauge the division's risk and cost of capital. Adjusting WACC: Tweak the overall WACC up or down based on each division's risk, using management insights. This approach ensures investments are better matched to each division's unique risk and potential, leading to smarter financial decisions