All Projects Should Always Use the WACC as the Required

question 102

True/False

All projects should always use the WACC as the required return for capital budgeting purposes.

---

Definitions:

Marginal Cost

The incremental expense incurred when a business produces another item of its product line.

Marginal Cost

The elevation in total spending caused by the assembly of one additional unit of a product or service.

Average Cost

It refers to the total cost divided by the number of goods or services produced.

Monopolist

A sole provider of a good or service in a market, facing no direct competition, which often results in the power to set prices.