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You are the CFO of Starbucks, and you consider investing in a new venture and specifically to introduce the Starbucks smart phone. Why the Starbuck's

You are the CFO of Starbucks, and you consider investing in a new venture and specifically to introduce the Starbucks smart phone.

Why the Starbuck's WACC is not the appropriate discount rate to use for NPV calculations?

Briefly explain how you could estimate the appropriate discount rate.

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