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A firms WACC can be correctly used to discount the expected cash flows of a new project when that project: a will be managed by
A firms WACC can be correctly used to discount the expected cash flows of a new project when that project:
a will be managed by the firms current managers.b will be financed solely with new debt and internal equity.c will be financed with the same proportions of debt and equity as those currently used by the overall firm.d has the same level of risk as the firms current operations.e will be financed solely with internal equity.
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