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Chapter 17




               5.3  When to use the WACC

                    If historic proportions of debt and equity are not to be changed

                    If the operating risk of the business will not be changed

                    If the finance is not project-specific, i.e. projects are financed from a pool of
                     funds

               or

                    the project is small in relation to the company so any of these changes are
                     insignificant.





























































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