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This answer will get multiple thumbs up if correct. When we use WACC approach in capital budgeting, we exclude interest expenses in the cash flow
This answer will get multiple thumbs up if correct.
When we use WACC approach in capital budgeting, we exclude interest expenses in the cash flow estimation because:
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interest expenses are financing cash flows.
interest expenses are incorporated in the cost of capital.
interest expenses are tax deductible.
interest expenses are not tax dedcutible.
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