Project Appraisal

Dear John,

I need clarification on following matter:

When appraising a project which does not effect business or finance risk we use existing WACC of the company.

If business risk is changed we use risk adjusted WAAC ( ungearing and regearing beta etc)

If finance risk is changed one way is to reflect new structure in WACC however as WACC assumes the debt is irredeemable it is better to use APV.

However which method is so use when both finance and business risk are changed?
APV is more appropriate right? we would calculate the all equity financed project value using new beta and than we will adjust it with costs/benefits of debt.

please confirm if this understanding is correct.