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If Brian is evaluating a new investment project that has the same risk as the firms typical project, what rate should the firm use to
- If Brian is evaluating a new investment project that has the same risk as the firms typical project, what rate should the firm use to discount the projects cash flows? Please answer by hand and not using excel. And most importantly, that you so much for all of your help!
A. If Brian is evaluating a new investment project that has significantly higher risk than the firms typical project, how would you adjust the discount rate?
B. What are two problems that arise if using the same WACC for projects that are riskier or less risky than your normal business?
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