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To decide whether to go forward with an investment, companies start by calculating their WACC. What is the best explanation for what WACC means? Multiple

To decide whether to go forward with an investment, companies start by calculating their WACC. What is the best explanation for what WACC means?

Multiple Choice

It is the weighted average cost of the firm's assets, liabilities and shareholders' equity
It is the weighted average return on investment from each project
It is the weighted average cost of each source of capital
It is the amount of capital that a firm needs to fund its projects

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