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Sungsam is a conglomerate consisting of an electronics division and a shipping division. The performance of the electronics division fluctuates a great deal with the
Sungsam is a conglomerate consisting of an electronics division and a shipping division. The performance of the electronics division fluctuates a great deal with the state of the economy while the performance of the shipping division tends to be more steady. If Sungsam uses its WACC to evaluate all investment projects, how would this influence the acceptance or rejection of projects in the two divisions?
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