Using the WACC to evaluate all projects has the effect of making low-r

Using the WACC to evaluate all projects has the effect of making low-risk projects look MORE attractive and high-risk projects look LESS attractive.

Indicate whether the statement is true or false.

ANSWER

Answer: FALSE
Explanation: Using the WACC to evaluate all projects has the effect of making low-risk projects look LESS attractive and high-risk projects look MORE attractive.

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