Wacc and Capital Budgeting?

Answer

WACC is a more appropriate discount rate when doing capital budgeting because it the first component when starting a business in order to strategize before investing. WACC is the rate at which a business needs to make profit on its investments made year to year and maintaining its value and make returns to security holders to finance its assets. Capital budgeting is the process of assessing the profits for future business projects especially when the funds are limited. This information can be obtained from
Q&A Related to "Wacc and Capital Budgeting?"
See the following Wiki topic: http://en.wikipedia.org/wiki/Capital_budgeting.
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If you use it, it gives you a better view of your return on investment, and it helps you decide how to finance future projects. You see in the formula the cost of equity verses the
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