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kirill115 [55]
1 year ago
12

He wacc is the appropriate discount rate for use with ______ projects but should be adjusted ______ for higher risk ones

Business
1 answer:
gregori [183]1 year ago
8 0

The WACC is the appropriate discount rate for use with average projects but should be adjusted upward for higher-risk ones.

Securities analysts may use WACC when evaluating the value of investment opportunities. For example, in discounted cash flow analysis, as a discount rate for future cash flows, he can apply WACC to derive the net present value of the firm.

Using the WACC discount rate makes the present value of investment appear higher than it actually is.

Businesses typically use the weighted average cost of capital (WACC) as the discount rate. This is to take into account the rate of return expected by shareholders. DCF has limitations. Primarily, it relies on estimates of future cash flows that may be inaccurate.

Learn more about WACC at

brainly.com/question/25566972

#SPJ4

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Discounted cash flow methods consider the present value of the cash flows after the recovery of the initial investment. quizlet
masya89 [10]

Discounted cash flow methods do not consider the present value of the cash flows after the recovery of the initial investment.

<h3>What is cash flow?</h3>

A cash flow is a physical or virtual movement of money: a cash flow in its most limited sense is a payment, particularly from one central bank account to another.

A cash flow statement is divided into three sections: operating activities, investments, and financial activities.

Cash flow from assets is the sum of all cash flows related to a company's assets. This data is used to calculate the net amount of cash generated by or used in the operations of a business.

Companies should track and analyze three types of cash flows to determine the liquidity and solvency of their business: cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities.

To know more about cash flow follow the link:

brainly.com/question/735261

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3 0
2 years ago
When jeffrey slipped on the stairs and hit his head, he saw "stars" for several minutes. The "stars" were most likely a result o
Kazeer [188]

I believe the answer is: occipital lobes

occipital lobes is a part of our brain that regulates our visual procesing and contain the largest amount of anatomical region for the visual cortex . A damage or impact that happen in this area could make us perceive that we are seeing things that we are not suppose to be seeing.

3 0
3 years ago
Perfect competition has _____ sellers.<br> no<br> one<br> many
Maru [420]
A perfect competition is a type of market, in which there are many<span> sellers and buyers who has fuul knowledge of the market. All element of monopoly (one man seller or buyer) is eliminated and the market price of a commodity is not controled by any individual buyer or seller.</span>
5 0
4 years ago
Read 2 more answers
g Larry recorded the following donations this year: $540 cash to a family in need $2,440 to a church $540 cash to a political ca
Pepsi [2]

Answer:

$2780

Explanation:

Given the following donations by Larry:

Cash to family in need $540

Cash to political campaign = $540

Church donation = $2440

Donation to salvation Army household = $340 (worth)

The allowable charitable contribution when applied to the an individual's adjustable Gross income. These contribution must be made to qualified charitable organizations in other to become eligible for deduction. In the scenario above, the qualified charitable organization include the donation to church and the salvation Army household :

Hemce, maximum allowable charitable contribution is :

$(2,440 + 340) = $2780

8 0
3 years ago
Short term creditors are usually interested in evaluating
LUCKY_DIMON [66]

Answer:

Short-term creditors are most interested in liquidity ratios because they provide the best information on the cash flow of a company and measure its ability to pay its current liabilities or the money a company owes to its creditors.

3 0
2 years ago
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