Explain when firms should discount projects using the cost, Corporate Finance

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Explain when firms should discount projects using the cost

1. Explain when firms should discount projects using the cost of equity. When should they use the WACC instead? When should they use neither?

2. If a firm takes actions that increase its operating leverage, we can expect to see an increase in its equity beta. Why?

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Corporate Finance: Explain when firms should discount projects using the cost

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