What if we use WACC for all projects regardless of risk? Assume WACC = 15% Project Required
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Question:
What if we use WACC for all projects regardless of risk?
Assume WACC = 15%
Project Required Return IRR
%20 %17
B %15 %18
K %10 %12
Which projects are accepted if they use WACC for the discount rate? Explain your reason.
Which projects should be accepted if you use the required return according to the risk of the project? Explain your reason.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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