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b. Is it logical to assume that the firm would take on all available independent, average-risk projects with returns greater than 13%? If all available
| b. Is it logical to assume that the firm would take on all available independent, average-risk projects with returns greater than | |||||||||
| 13%? If all available projects with returns greater than 13% have been undertaken, does this mean that cash flows from past | |||||||||
| investments have an opportunity cost of only 13% because all the company can do with these cash flows is to replace money that | |||||||||
| has a cost of 13%? Does this imply that the WACC is the correct reinvestment rate assumption for a projects cash flows? | |||||||||
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Public Finance
Authors: Harvey Rosen, Ted Gayer
10th edition
9781259716874, 78021685, 1259716872, 978-0078021688
