An Appropriate Guideline to Adopt When Determining the Valuation Formula

question 29

Multiple Choice

An appropriate guideline to adopt when determining the valuation formula to use is:

• A)never use the APV approach.
• B)use APV if the project is far different from scale enhancing.
• C)use WACC if the project is close to being scale enhancing.
• D)Both A and C.
• E)Both B and C.

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