When using the WACC for international projects,the weights should be specific to the ________ and not the overall firm.

Question

Quizplus · Accepted Answer

The WACC (weighted average cost of capital) for international projects should be specific to the international project and not the overall firm. This is because the weights used in the calculation should be based on the cash flows of the specific international project, rather than the cash flows of the overall firm. The tax rate and terminal value may also be specific to the international project, but they are not directly related to the calculation of the WACC. Therefore, the best choice is C.

When Using the WACC for International Projects,the Weights Should Be