Risk for the investment company

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In my neighborhood there are alot of abandon homes so the town decided to purchase the homes from the bank and turn them into computer labs and outreach programs for the city. The WACC being 6% and ROR being 13% this investement would be great because the lower the WACC the lower the risk for the investment company. With the WACC being that low it will attract more potential investors to refurbish other abandon properties maybe even for resale or rental properties. Having a lower wacc means the company didnt invest a large amount of capital in order to be able to see a large return on the investment.

Reference no: EM133152166

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