Unformatted text preview: in budgeting decisions. WACC should be covered in the Capital Budgeting section of the textbook or in the MyAccountingLab resource. ===================== Not exactly Paul. The Weighted Average Cost of Capital or the Hurdle rate is the minimum amount that the company is willing to accept as a return on a project. The WACC is compared to NPV, IRR, and ARR to determine if the project is acceptable. Does that make sense? Again, once you define what the WACC is and what it means you can compare it to other investment alternatives. =====================================================...
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- Spring '11
- Net Present Value, Internal rate of return, Weighted average cost of capital, weighted average cost