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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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