FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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After calculating WACC for determining the required rate of return a corporation must achieve on a capital project, an addition percentage may be added to take into consideration: 

  1. How large the project is.
  2. Addition risk the project may bring to the corporation above what the normal acceptable risk is.
  3. The interest rate are in the bond market.
  4. How long will it take to complete the project.
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