Question
When one uses the weighted average cost of capital (WACC) to calculate the NPV of a projected funded by a firm with debt, the interest
When one uses the weighted average cost of capital (WACC) to calculate the NPV of a projected funded by a firm with debt, the interest tax payments are:
| Not accounted for by the use of the WACC | ||
| Considered by deducting the interest payments in the free cash flows | ||
| Automatically considered by discounting at WACC | ||
| Capitalized by the levered cost of equity |
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Risk Management And Financial Institutions
Authors: John Hull
1st Edition
0132397900, 9780132397902
