The discount rate represents the opportunity cost of capital used to evaluate the present value of future cash flows

A project is generally considered acceptable if its internal rate of return (IRR) exceeds the WACC

The discount rate is always lower than the WACC to make investment options more appealing

WACC is commonly used as the discount rate in project evaluation because it reflects the average return required by both debt and equity holders

Net cash flow is the difference between cash received and cash spent over a given period, typically a year, but it may be shorter

The time value of money principle states that money available today is worth more than the same amount received in the future

Net cash flow represents the total future value of money received minus money spent over a period of time

The WBS is used to decompose the project scope into manageable deliverables.

The WBS is a primary tool for identifying the project’s critical path.

Resource leveling aims to minimize fluctuations in resource demand.

Resource leveling primarily focuses on adjusting activity durations to balance resource allocation.

Resource leveling always shortens the project's critical path.

Resource leveling may extend the project duration if there is no float available.