Question: When firms develop a WACC for individual projects based on the cost of capital for other forms in similar lines of business as the project,
When firms develop a WACC for individual projects based on the cost of capital for other forms in similar lines of business as the project, the firm is utilizing a capital adjustment approach security market line approach, subjective risk approach. pure play approach. divisional cost of capital approach. Question 22 4 pts Which of the following is NOT a relevant incremental cash flow for capital budgeting purposes? Opportunity costs Sales erosion Sunk costs Salvage value O Net working capital
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