Compare and contrast the wacc to this basic accounting

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The weighted average cost of capital (WACC) can be realted to the basic accounting equation as follows:

A=L+OE

compare and contrast the WACC to this basic accounting equation. does the WACC contain a profit component? how does the WACC relate to the discount rate used in a net present value NPV computation, using a case where NPV equals zero to make your point?

Reference no: EM13245668

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