How you could adapt the wacc for use on the project

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Reference no: EM133525365

Question: Which project is the best candidate for using the companies cost of capital?

Project A: Pharma X is opening up a new lab in Central Washington DC. The size of the lab will be very similar to the existing labs around the country.

Project B: Pharma X is designing a new technology for drug production under extremely cold temperatures to increase the effectiveness of a product.

Question: For the project that was not a good fit for the firm's WACC, provide at least 2 options for how you could adapt the WACC for use on the project? Explain whether you would use one of these methods or use the above cost of capital and why.

 

Reference no: EM133525365

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