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Project free cash flows

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Reference no: EM131933105

Exxon-Mobil has 50% debt and 50% equity, a WACC of 10% and a tax rate of 30%.  You are evaluating a joint venture in Kuwait.  This joint venture would be financed entirely with debt. You should use the company's WACC of 10% to discount the project's free cash flows. True or False? Why?

Reference no: EM131933105

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