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Accept or reject decision base rejected the return is less


Division A (Low Risk) WACC = 7%

Division B (High Risk ) WACC = 13%

2 division has composite WACC of 12%

Division B considering a project with expected return = 12%

  1. Should I accept or reject the project?
  2. Accept or reject decision base? rejected the return is less than risk based or accept the return is greater thank risk based?

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Business Economics: Accept or reject decision base rejected the return is less
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