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Creating Value by investing with a return below firm's WACC

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Your company's weighted average cost of capital is 11%.
You believe the company should make a particular investment, but the IRR of this investment is only 9%.

What arguments might exist in support of your position?

Is it really possible that making an investment with a return below your firm's cost of capital can ever create value?

Explain.

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The solution answers the question whether it is possible that making an investment with a return below your firm's cost of capital will ever create value.

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The company's weighted average cost of capital is the discount rate is to be used for a project whose risk is the same as the average risk of the company's ...

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