This technical note compares the two treatments duty use discounted cash flow evaluation of investment projects or companies. The note shows that the approach using the weighted average cost of capital (WACC) and the approach of using the residual capital (ER) give equivalent results, if appropriate assumptions are used. Common characteristics are illustrated by specific examples, including the table. "Hide
Robert S. Harris on 5 pages. Publication Date: September 19, 2000. Prod. #: UV2485-PDF-ENG