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    Weighted Average Cost Capital (WACC)

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    1) Why is WACC important to an organization?

    2) What impact does WACC have on capital budgeting and structure?

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    https://brainmass.com/business/capital-budgeting/weighted-average-cost-capital-wacc-76787

    Solution Preview

    The "Hurdle Rate" or the "Discount Rate" represented by the 'Weighted Average Cost of Capital' (WACC) plays an important role in deciding the Net Present Value (NPV) of a project. Calculating the NPV is an important task since it allows the decision maker to make sound investment decisions; if the NPV of a project is positive, then the project is profitable and should be taken, ...

    Solution Summary

    'Weighted Average Cost of Capital' (WACC) is emphasized.

    $2.19