How important is developing an accurate wacc to output

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Question

1. How important is developing an accurate WACC to output of DCF models?

2. How challenging can it be for firms to develop the required future cash flows that are necessary for the inclusion in project valuation?

3. How do we reflect risk in DCF modeling? What factors can be adjusted in the model inputs to represent a higher risk versus lower risk project?

Reference no: EM132379107

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