New method simplifies project valuation and financing mix calculations for firms.
The article suggests new methods for valuing investment projects and determining their economic value. One method, called the "generalized ATWACC method," adjusts the standard WACC calculation independently of debt ratios. Another method, the "adapted BTWACC method," offers a consistent adaptation of the Arditti-Levy method. These methods help firms accurately value projects with different tax rates and loan allocations, improving decision-making in capital budgeting and financing.