How does wacc relate to discount rate used in net present

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The weighted average cost of capital (WACC) can be related to the basic accounting equation as follows: A= L + OE

Compare and contrast the WACC to this basic accounting equation. Does the WACC contain a profit component? How does the WACC relate to the discount rate used in net present value (NPV) computation, using a case where NPV equals zero to make your point?

Reference no: EM13477424

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