Suppose you own a chain of dry cleaners and the WACC you’ve been using to make decisions on new purchases of dry cleaning equipment is a steady 9%. Recently, gambling has been made legal in your home town so you decide to expand and open up a casino. Should you use the same WACC to evaluate purchases of casino equipment? Why or why not? What are some alternatives to using the same WACC to make decisions on casino equipment? Explain your reasoning, and make references to concepts from the background readings.

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The capital, the weighted average cost, is the least rate of return required from the person in need gets from the operation they ought to do. Suppose the initial earning is smaller than the WACC. In that case, it is advisable not to get yourself into the investment because the WACC, which was initially, can determine whether to decide on a new project or not as it can cause the risk category to be the same. In our case, the person concerned wants to invest their capital into the business of gambling. Here, the outcome is unpredictable as anything can happen as it depends upon the luck of individuals who are going to put their bet, so the risk is very high. For an individual to overcome this strategy, first, the rate of WACC should be increased on the high side as the increase will cover the risk that may occur.

Then if, after considering the increment of WACCC on the higher side, the business is deemed acceptable, it brings a positive impact. An individual should also look at the minimum net present value to deduct as the NPV minimum rate required to return and recover the gambling when at risk, and it should be positive. There should also be the application of the normal WACC and the estimation of the actual net present value, and if found there is going to be a higher cut-off NPV which is positive, then agree to start up the Project else reject. Finally, these criteria can also shape the business and prevent additional risk throughout the gambling project business as it makes sure that the people concerned make meaningful decisions.

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Academic.Tips. (2022) 'Suppose you own a chain of dry cleaners and the WACC you’ve been using to make decisions on new purchases of dry cleaning equipment is a steady 9%. Recently, gambling has been made legal in your home town so you decide to expand and open up a casino. Should you use the same WACC to evaluate purchases of casino equipment? Why or why not? What are some alternatives to using the same WACC to make decisions on casino equipment? Explain your reasoning, and make references to concepts from the background readings'. 3 November.

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Academic.Tips. (2022, November 3). Suppose you own a chain of dry cleaners and the WACC you’ve been using to make decisions on new purchases of dry cleaning equipment is a steady 9%. Recently, gambling has been made legal in your home town so you decide to expand and open up a casino. Should you use the same WACC to evaluate purchases of casino equipment? Why or why not? What are some alternatives to using the same WACC to make decisions on casino equipment? Explain your reasoning, and make references to concepts from the background readings. https://academic.tips/question/suppose-you-own-a-chain-of-dry-cleaners-and-the-wacc-youve-been-using-to-make-decisions-on-new-purchases-of-dry-cleaning-equipment-is-a-steady-9-recently-gambling-has-been-made-legal-in-you/

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Academic.Tips. 2022. "Suppose you own a chain of dry cleaners and the WACC you’ve been using to make decisions on new purchases of dry cleaning equipment is a steady 9%. Recently, gambling has been made legal in your home town so you decide to expand and open up a casino. Should you use the same WACC to evaluate purchases of casino equipment? Why or why not? What are some alternatives to using the same WACC to make decisions on casino equipment? Explain your reasoning, and make references to concepts from the background readings." November 3, 2022. https://academic.tips/question/suppose-you-own-a-chain-of-dry-cleaners-and-the-wacc-youve-been-using-to-make-decisions-on-new-purchases-of-dry-cleaning-equipment-is-a-steady-9-recently-gambling-has-been-made-legal-in-you/.

1. Academic.Tips. "Suppose you own a chain of dry cleaners and the WACC you’ve been using to make decisions on new purchases of dry cleaning equipment is a steady 9%. Recently, gambling has been made legal in your home town so you decide to expand and open up a casino. Should you use the same WACC to evaluate purchases of casino equipment? Why or why not? What are some alternatives to using the same WACC to make decisions on casino equipment? Explain your reasoning, and make references to concepts from the background readings." November 3, 2022. https://academic.tips/question/suppose-you-own-a-chain-of-dry-cleaners-and-the-wacc-youve-been-using-to-make-decisions-on-new-purchases-of-dry-cleaning-equipment-is-a-steady-9-recently-gambling-has-been-made-legal-in-you/.

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Academic.Tips. "Suppose you own a chain of dry cleaners and the WACC you’ve been using to make decisions on new purchases of dry cleaning equipment is a steady 9%. Recently, gambling has been made legal in your home town so you decide to expand and open up a casino. Should you use the same WACC to evaluate purchases of casino equipment? Why or why not? What are some alternatives to using the same WACC to make decisions on casino equipment? Explain your reasoning, and make references to concepts from the background readings." November 3, 2022. https://academic.tips/question/suppose-you-own-a-chain-of-dry-cleaners-and-the-wacc-youve-been-using-to-make-decisions-on-new-purchases-of-dry-cleaning-equipment-is-a-steady-9-recently-gambling-has-been-made-legal-in-you/.

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"Suppose you own a chain of dry cleaners and the WACC you’ve been using to make decisions on new purchases of dry cleaning equipment is a steady 9%. Recently, gambling has been made legal in your home town so you decide to expand and open up a casino. Should you use the same WACC to evaluate purchases of casino equipment? Why or why not? What are some alternatives to using the same WACC to make decisions on casino equipment? Explain your reasoning, and make references to concepts from the background readings." Academic.Tips, 3 Nov. 2022, academic.tips/question/suppose-you-own-a-chain-of-dry-cleaners-and-the-wacc-youve-been-using-to-make-decisions-on-new-purchases-of-dry-cleaning-equipment-is-a-steady-9-recently-gambling-has-been-made-legal-in-you/.

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