Discounting after-tax cash flows to debt and equity at the weighted average cost of capital is the most commonly used method for project valuation in market economies.

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Discounting after-tax cash flows to debt and equity at the weighted average cost of capital is a widely accepted valuation method in market economies. It takes into account the cost of capital for both debt and equity financing, as well as the tax implications of debt financing, resulting in a more accurate assessment of a project's value.

Discounting After-Tax Cash Flows to Debt and Equity at the Weighted