contestada

If a company uses its WACC as the discount rate for all of the projects it undertakes then the company will tend to: Multiple Choice accept all positive net present value projects. increase the average risk level of the company over time. reject all high-risk projects. reject all negative net present value projects. favor low-risk projects over high-risk projects.

Respuesta :

Zviko

Answer:

Reject all negative net present value projects

Explanation:

Weighted Average Cost of Capital (WACC) is the return that is required by the holders of long term sources of finance in the business.

It shows the risk of the company.

All projects with a negative Net Present Value are rejected.

Otras preguntas