Problemthe use of wacc to select investments is acceptable, Ask an Expert

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Problem:

The use of WACC to select investments is acceptable when the:

A. correlations of all new projects are equal.

B. NPV is positive when discounted by the WACC.

C. risks of the projects are equal to the risk of the firm.

D. firm is well diversified and the unsystematic risk is negligible

Please provide step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146159

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