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Homework answers / question archive / Company versus Project Discount Rates
Company versus Project Discount Rates. Geothermal's WACC is 11.4%. Executive Fruit's WACC is 12.3%. Now Executive Fruit is considering an investment in geothermal power production. (L013-2) a. Should it discount project cash flows at 12.3%? b. What would be a better discount rate for this investment?
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