For an average-risk project, the opportunity cost of capital is [...]
Answer
the company’s WACC.
If you want to change selection, open original toplevel document below and click on "Move attachment"
Parent (intermediate) annotation
Open it For an average-risk project, the opportunity cost of capital is the company’s WACC.
Original toplevel document
2.3. Applying the Cost of Capital to Capital Budgeting and Security Valuation of capital for the project, product, or division as opposed to the cost of capital for the company overall. The cost of capital in these applications should reflect the riskiness of the future cash flows of the project, product, or division. <span>For an average-risk project, the opportunity cost of capital is the company’s WACC. If the systematic risk of the project is above or below average relative to the company’s current portfolio of projects, an upward or downward adjustment, respectively, is made to the c
Summary
status
not learned
measured difficulty
37% [default]
last interval [days]
repetition number in this series
0
memorised on
scheduled repetition
scheduled repetition interval
last repetition or drill
Details
No repetitions
Discussion
Do you want to join discussion? Click here to log in or create user.