Question: True or false The APV method a. Starts with a base-case value for the project. b. Calculates the base-case value by discounting project cash flows,

True or false

The APV method

a. Starts with a base-case value for the project.

b. Calculates the base-case value by discounting project cash flows, forecasted assuming all-equity financing, at the WACC for the project.

c. Is especially useful when debt is to be paid down on a fixed schedule.


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