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The use of WACC to select investments is acceptable when the: correlation of all new projects are equal NPV is positive when discounted by WACC

The use of WACC to select investments is acceptable when the:

correlation of all new projects are equal

NPV is positive when discounted by WACC

risk of the projects are equal to the risk of the firm

firm is well diversified and the unsystematic risk is negligible.

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