Question
22. Why would a firm not use its weighted average cost of capital (WACC) to evaluate all proposed investments? Your answer should include all aspects
22. Why would a firm not use its weighted average cost of capital (WACC) to evaluate all proposed investments? Your answer should include all aspects of the limitations of WACC.
23. For mutually exclusive projects, explain why picking one project over another because of it having a larger IRR can lead to mistakes. Your answer should include all aspects of the limitations of IRR.
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
