hamzijadoon886

A firm's WACC:

A. is a benchmark discount rate that is adjusted for the riskiness of each project.

B. is an informational value only and should never be used as a discount rate.

C. is used to value all of the firm's existing projects.

Skyline Corp. will invest $130,000 in a project that will not begin to produce returns until after the 3rd year. From the end of the 3rd year until the end of the 12th year (10 periods), the annual cash flow will be $34,000. If the cost of capital is 12 percent, should this project be undertaken?