The weighted average cost of capital is used so project acceptance is not subject to how it is to be financed.

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The weighted average cost of capital (WACC) takes into account the cost of all financing sources, including debt and equity, and provides a single discount rate that can be used to evaluate the feasibility of a project. By using WACC as the discount rate, project acceptance is not subject to the specifics of how it will be financed, as the same discount rate is applied regardless of financing mix.

The Weighted Average Cost of Capital Is Used So Project