question archive Grading Criteria Section A: Explain Components of Project Analysis 1
Subject:BusinessPrice: Bought3
Grading Criteria
1. Weighted Average Cost of Capital (WACC)
Begin your analysis of acquisition by explaining why only some component costs of the firm are included when computing financing costs for this project, concentrating on the choice between a project/divisional cost of capital versus a firm-wide cost of capital approach. (max 400 words) [30 points]
2. Principles for Cash Flow Estimation
Evaluation of Alternatives