We use the weighted average cost of capital to find the npv


1. We use the weighted average cost of capital to find the NPV of projects and to value the firm. Why is the WACC the best discount rate? If our firm has some really risky projects and some low risk projects, is it appropriate to use the WACC as the discount rate on both projects? Why or why not?

2. Since 2007, a particular fund returned 13.6% compounded monthly. How much would a $4000 investment in this fund have been worth after 2 years? (Round your answer to the nearest cent.) __________$ ?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: We use the weighted average cost of capital to find the npv
Reference No:- TGS02854768

Expected delivery within 24 Hours