?

Corporate Finance

Free Version

Upgrade subject to access all content

Easy

Using WACC in Project Evaluation

CORPFN-4YXEBD

New projects can be evaluated using the company's weighted average cost of capital (WACC) if

A

the new projects possess the same risk as the company.

B

the new projects have the same financing structure as the company.

C

the new projects are all equity financed.

D

the new projects are in the same tax bracket as the company.