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Capital budgeting is essential because funds are not unlimited and investing in projects is how companies grow. We will address two topics: 1. Why does

Capital budgeting is essential because funds are not unlimited and investing in projects is how companies grow. We will address two topics: 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?

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