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If the project has higher than average risk relative to the typical project of the firm, then Question 23 options: A) Use the WACC to
If the project has higher than average risk relative to the typical project of the firm, then Question 23 options: A) Use the WACC to discount the cash flows for NPV determination. B) Use a pure play to determine the correct discount rate for the project. C) Use a higher discount rate from a subjective approach relative to WACC. D) Use a lower discount rate from a subjective approach relative to WACC. E) Both B and C would be correct approaches to use.
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