why npv uses wacc not roe
In capital budgeting We use the WACC, adjusted for project-specific risk, to calculate the net present value (NPV). Using a companyâs overall WACC in evaluating a capital project assumes that the project has risk similar to the average project of the company.n capital budgeting We use the WACC, adjusted for project-specific risk, to calculate the net present value (NPV). Using a companyâs overall WACC in evaluating a capital project assumes that the project has risk similar to the average project of the company.