A firm's WACC can be correctly used to discount the expected cash flows of a new project when that project will:
a. be financed solely with internal equity.
b. be financed based on the firm's current debt-equity ratio.
c. be financed solely with new debt and internal equity.
d. have the same level of risk as the firm's current operations.
e. be managed by the firm's current managers.
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Home » Business » A firm's WACC can be correctly used to discount the expected cash flows of a new project when that project will: a. be financed solely with internal equity. b. be financed based on the firm's current debt-equity ratio. c.