The WACC formula works for the "average risk" project.

Name: The WACC formula works for the "average risk" project.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

The WACC formula is used to calculate the expected return on investment for a project based on its cost of capital. It takes into account the cost of debt and equity financing, as well as the relative weights of each. The formula assumes that the project has an average level of risk, so it may not be appropriate for all types of projects or investments.

The WACC Formula Works for the "Average Risk" Project