Why would a firm not use its weighted average cost of


1. Why would a firm not use its weighted average cost of capital (WACC) to evaluate all proposed investments? Your answer should include all aspects of the limitations of WACC.

2. For mutually exclusive projects, explain why picking one project over another because of it having a larger IRR can lead to mistakes. Your answer should include all aspects of the limitations of IRR.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Why would a firm not use its weighted average cost of
Reference No:- TGS02654915

Expected delivery within 24 Hours