Question 8 / WACC in Firm Valuation Equation

For the questions below, refer to the final slides of the Risk-Return presentation. 8. How does one use WACC in Firm Valuation Equation* and why is it in the firm's advantage to have a lower WACC? *Firm valuation equation from our Time Value slides: PVofFirm=CF11(1+r)t+CF2l(1+r)2+ Why is the WACC important for the firm when assessing a new project using the Discounted Cash Flow Model (capital budgeting)? Net Present Value of Project C0+CF1/(1+r)t+CF2/(1+r)2+