Why is the lowest-cost wacc such a critical factor

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1. In terms of potential capital investment projects, why is the lowest-cost WACC such a critical factor linking capital structure decisions to maximum value of operations and stock price?

2. Why is the NPV valuation technique considered to be the gold standard in evaluating investment opportunities? Does this consideration hold for both independent and mutually exclusive investments? Explain your responses.

Reference no: EM131830326

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