With respect to the WACC:

Name: With respect to the WACC:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The WACC is a benchmark discount rate, but it needs to be adjusted based on the riskiness of the project. Therefore, C is the correct choice. A is incorrect as the WACC may not be appropriate for all projects. B is incorrect as the WACC is not used to value all new projects, only those that are similar in risk to the company's overall operations. D is incorrect as adjustments need to be made to the WACC based on the project's riskiness.

With Respect to the WACC