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Under which condition is it appropriate to use the company's existing WACC as th...

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Under which condition is it appropriate to use the company's existing WACC as the discount rate for a new project?

When the project is financed fully with debt

0%

When the project has similar risk to the company's existing operations and will not change the capital structure

100%

When the project is very small

0%

When the project has a different risk profile from the company's normal operations

0%

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