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QUESTION
Suppose ARG Inc. estimate its cost of capital (WACC) for the year 2010 to be 12%, should the project officer used this WACC to evaluate all of its
Suppose ARG Inc. estimate its cost of capital (WACC) for the year 2010 to be 12%, should the project officer used this WACC to evaluate all of its potential projects even if they vary in risk? If not, what is a reasonable cost of capital if the firm has a high, medium, and low risk project?
