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    Cash 5

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    Shruti Maheshwari
    Projects are classified as low, medium, or high risk based on their discount rate compared to a firm's weighted average cost of capital (WACC). Low risk projects have a discount rate below the WACC, medium risk projects equal to the WACC, and high risk projects above the WACC.

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    Cash 5

    Uploaded by

    Shruti Maheshwari
    8 views1 page
    Projects are classified as low, medium, or high risk based on their discount rate compared to a firm's weighted average cost of capital (WACC). Low risk projects have a discount rate below the WACC, medium risk projects equal to the WACC, and high risk projects above the WACC.

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    Projects are classified as low, medium, or high risk based on their discount rate compared to a firm's weighted average cost of capital (WACC). Low risk projects have a discount rate below the WACC, medium risk projects equal to the WACC, and high risk projects above the WACC.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    8 views1 page

    Cash 5

    Uploaded by

    Shruti Maheshwari
    Projects are classified as low, medium, or high risk based on their discount rate compared to a firm's weighted average cost of capital (WACC). Low risk projects have a discount rate below the WACC, medium risk projects equal to the WACC, and high risk projects above the WACC.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

     For example, projects may be classified as:

     Low risk projects

    discount rate < the firm’s WACC

     Medium risk projects

    discount rate = the firm’s WACC

     High risk projects

    discount rate > the firm’s WACC

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