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The Weighted Average Cost of Capital (WACC) is the appropriate discount rate or hurdle rate for evaluating investments when the: (a) correlation of all new
The Weighted Average Cost of Capital (WACC) is the appropriate discount rate or hurdle rate for evaluating investments when the: (a) correlation of all new projects are equal. (b) firm is well diversified and the unsystematic risk is negligible. (c) risk of the projects is equal to the risk of the firm. (d) NPV is positive when discounted by the WACC (e) None of the above
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