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Please help.
If the project is financed wholly by debt, will the discounting rate be the after tax cost of debt?No. Unless there is a major change in the gearing (which is not relevant until Paper P4) then we appraise at the WACC.
Have you watched my free lectures, because I explain this in the lectures. The lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well.
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