Since both the project risk and the project's financial structure can vary from the corporate norm,to reflect the actual values of the different cost components,it is necessary to

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Quizplus · Accepted Answer

Adjusting the costs and weights reflects the actual values of the different cost components and allows for a more accurate calculation of the required rate of return for the project. Referring always to the corporate weighted average cost of capital may not accurately reflect the specific risk and financial structure of the project. Adjusting the project's beta or required rate of return may also be necessary, but these would be specific adjustments based on the project's unique characteristics.

Since Both the Project Risk and the Project's Financial Structure