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In General, Firms Should Use Their Weighted Average Cost of Capital

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In general, firms should use their weighted average cost of capital (WACC) to evaluate capital budgeting projects because most projects are funded with general corporate funds, which come from a variety of sources.However, if the firm plans to use only debt or only equity to fund a particular project, it should use the after-tax cost of that specific type of capital to evaluate that project.


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A professional and collaborative partnership between a counselor and client focused on the client’s growth and well-being.

Contact Information

Details used to communicate with someone, such as phone number, email, or address.

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