The _______ method is the most popular approach to project valuation.
A) adjusted present value
B) Boston Consulting Group
C) opportunity cost method
D) price elasticity of demand
E) weighted average cost of capital

Question

Quizplus · Accepted Answer

The weighted average cost of capital (WACC) is the most popular approach to project valuation. It involves calculating the weighted average cost of the different sources of financing used to fund a project and using this figure as the discount rate in order to calculate net present value (NPV). NPV is used to determine whether a project will generate positive returns and therefore be worth undertaking.

The _______ Method Is the Most Popular Approach to Project