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Title: The WACC for this project is closest to: Post by: EpiscoWhat on Nov 20, 2017 The WACC for this project is closest to:
A) 3.0% B) 5.0% C) 7.0% D) 8.2% Title: Re: The WACC for this project is closest to: Post by: deusmaroto on Nov 20, 2017 A
Explanation: A) Since this project is totally debt financed at the risk free rate, the risk free rate of 5% is the before tax WACC. The after tax wacc is the simply rf(1 - Tc) = 5%(1 - 40%) = 3%. |