Drop down options for the first blank: Internal Rate of Return or Discount Rate

Drop down options for the second blank: Hurdle Rate or Maximum Return

Drop down options for the third blank: An inverse or a direct

1. The weighted average cost of capital Aa Aa bnourerianin The weighted average cost of capital (WACC) is used in the capital budgeting project evaluation used in the calculation of a project's net present against which a project's internal rate of return (IRR) is process either as the value (NPV) or the compared In general, there is relationship between a firm's risk level and its weighted average cost of capital. True or False: A firm's weighted average cost of capital (WACC) reflects the composite cost of its debt, preferred stock, and common equity capital. O False True True or False: Because most firms tend to raise funds in large, lumpy amounts, their weighted average cost of capital should reflect the individual, after-tax cost of the particular source of funds used to finance an investment project O False True