[rangeuk37]

Is that not a moderate approach if it is in the middle?

[rangeuk37]

@shafeeibrahim7575 said:
Guys can anyone remember what is the B question in the q31 wacc?
Something to do with importance/instances of the wacc for the investment appraisal ?? A 3 marks theory question thank you

Why using WACC is not the most appropriate way of discounting?

So assumptions for WACC (Business risk same / project relatively small) vs CAPM project specific / new project has different risk attached is better to use.

[rangeuk37]

NPV 10.8m using 12%
Discounted payback 2.9 years
WACC I got 6.5%
Kd using IRR = 5/6%
Preference = 8.1%
Ke = did D1/p (g = 4%?)

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