1 WACC

Apr 04, 2016 · The overall average cost of TP’s capital can be found by taking a simple weighted average of the costs of the two sources as follows: WACC = {10% × 60%} + {5% × 40%} = 8% This cost of capital can then be used as the discount rate (hurdle rate) for appraising potential projects using NPV analysis ................
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