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1. Why does WACC increase and IRR decrease as the capital budget increases? Are there any steps management can take to reverse these trends? 2.

1. Why does WACC increase and IRR decrease as the capital budget increases? Are there any steps management can take to reverse these trends?

2. How should a company prioritize all of its capital project opportunities? In responding invoke the various methodologies learned this week and how to use them for ranking projects.

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