Explain how the weighted average cost of capital analysis

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Q. "The question was truncated. Part B comprised some additional items. Can you complete them also?

1. Based upon your IRR analysis in part A3, make a recommendation to Entrepreneur D regarding illustrate what decision to make.

a. Explain why this is an appropriate action.

2. Explain why the accounting rate of return on this project is different from the internal rate of return for the same capital investment.

3. Explain the relative significance of the unadjusted payback period in this decision situation.

4. Explain how the weighted average cost of capital should be used in capital budgeting analysis when utilizing the NPV method.

5. Explain how the weighted average cost of capital should be used in capital budgeting analysis when utilizing the IRR method."

 

 

Reference no: EM1389145

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