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What is a reason that assuming reinvestment at the WACC is more reasonable than reinvestment at the IRR? a. The WACC is
Posted: Tue Jan 18, 2022 1:00 pm
by answerhappygod
- What Is A Reason That Assuming Reinvestment At The Wacc Is More Reasonable Than Reinvestment At The Irr A The Wacc Is 1 (28.01 KiB) Viewed 56 times
What is a reason that assuming reinvestment at the WACC is more reasonable than reinvestment at the IRR? a. The WACC is standard across all Industries so it makes a better comparison for decision making O b. If a firm has reasonable access to capital markets, it can raise all the necessary capital at the going rate, which would be the WACC O c The WACC is much easier to compute than the IRR. Od. The IRR is constantly fluctuating, and the WACC is a consistent rate. O e. Using the WACC doesn't result in an opportunity cost, whereas the IRR generally does.