header bg

Scan QR code or get instant email to install app


If a firm uses the weighted average cost of capital (WACC) to discount cash flows of higher than average risk projects, which one of the following will most likely occur?

A The overall risk of the firm’s investments will rise over time.

Risky projects will seem relatively more attractive than they actually are, causing them to be undertaken a disproportionately high percentage of the times they are considered.

Related Information


Leave a Reply

Your email address will not be published. Required fields are marked *