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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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