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This week the lesson is Capital Budgeting. In many cases the evaluation of capital projects requires an estimate of r (cost of capital) for the
This week the lesson is Capital Budgeting. In many cases the evaluation of capital projects requires an estimate of r (cost of capital) for the project. If a firm has already determined WACC, why not just use WACC as r for all projects? Can you think of situations or considerations that would cause r for a specific project to differ significantly from a firm's overall WACC
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