Why does wacc increase and irr decrease

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Reference no: EM131970319

Let's pick up the discussion on capital budgeting which was started last week.

Capital budgeting is essential because funds are not unlimited and investing in projects is how companies grow. We will address two topics:

1. Why does WACC increase and IRR decrease as the capital budget increases? Are there any steps management can take to reverse these trends?

2. How should a company prioritize all of its capital project opportunities?

400 WORDS!!

Reference no: EM131970319

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