Question 1. Describe some situations where the weighted-average cost of capital (WACC) would be an inappropriate discount rate in the NPV calculation.?
Question 2. What are some of the pitfalls in forecasting cash flow for a project?
Question 3. How do you compensate for risk in the NPV calculation
Question 4. What are some methods for hedging exchange rate risk?
Question 5. What is the difference between book value and market value? Which is more relevant in financial analysis?