Mathematics, 10.03.2021 02:40 voldermort9695
Now drag the Low risk and High risk project points so their expected rates of return are 7% and 11%, respectively. If you could choose only one project to go forward, which would you choose?
Project Low because its expected rate of return is close to its WACC.
Project Average because its expected rate of return equals its WACC and the others are both below their respective WACC's.
Project High because its expected rate of return is higher than for any of the other projects.
Any are good choices because the WACC balances the risk.
answer is
b
Answers: 1
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Now drag the Low risk and High risk project points so their expected rates of return are 7% and 11%,...
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