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Exxon-Mobil has 50% debt and 50% equity, a WACC of 10% and a tax rate of 30%. You are evaluating a joint venture in Kuwait.

Exxon-Mobil has 50% debt and 50% equity, a WACC of 10% and a tax rate of 30%. You are evaluating a joint venture in Kuwait. This joint venture would be financed entirely with debt. You should use the companys WACC of 10% to discount the projects free cash flows. true or false? why?

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