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In theory, every project in a firm should be assessed using a discount rate that has been risk adjusted for that specific project. Is it
In theory, every project in a firm should be assessed using a discount rate that has been risk adjusted for that specific project. Is it done in practice? What are the pros and cons of using project specific WACCs? What are the practical limitations to this theoretical expectation for corporates who deal with multiple projects at the same time? Cite the relevant literature when answering your question. Use at most 250 words.
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