One of the major differences between the WACC analysis and ANPV is the fact that ANPV

A) takes into consideration the interest expense of raising debt capital.
B) allows after-tax interest payments into the cash flows.
C) uses the rate of return on the unlevered assets to get the all-equity value.
D) uses a discount rate that takes into account the after-tax returns on capital.

Answer: C

Business

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