Question: Why is an accurate WACC so important when evaluating a new project? Assume a negative cash outflow at Time 0 and positive project cash flows

Why is an accurate WACC so important when evaluating a new project? Assume a negative cash outflow at Time 0 and positive project cash flows thereafter.

the projects acceptance/rej decision will be based on NPV calculated using that WACC

the return to shareholders will be limited by the WACC

The coupon rate on new bonds issued to fund the project will be set equal to WACC

the firm can only maintain or increase its current value if the project WACC exceeds the projects internal rate of return

the projects WACC will replace the firm's WACC as the discount rate for all future projects

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