1 Why does WACC increase and IRR decrease as the capital budget increases? Are there any steps management can take to reverse these trends? 2 How should a company prioritize all of its capital project opportunities?
1 Why does WACC increase and IRR decrease as the capital budget increases? Are there any steps management can take to reverse these trends? 2 How should a company prioritize all of its capital project opportunities?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk
Section: Chapter Questions
Problem 8Q
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