When Using the WACC for International Projects,the Weights Should Be

question 3

Multiple Choice

When using the WACC for international projects,the weights should be specific to the ________ and not the overall firm.

• A) cash flows
• B) tax rate
• C) international project
• D) terminal value

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Definitions:

Cost

The amount of money required to purchase something or the expenditure incurred on the production of a good or service.

New Balance

The amount remaining in an account after all debits and credits have been accounted for during a specified period.

Mark-up

An increase in the original price of items meant to compensate for overhead expenditures and ensure profit.

Selling Price

The amount of money for which a product or service is sold to the consumer.