Analysis of cost of capital

• Is it a good assumption to use Hilton’s WACC as a basis for the cost of capital of this purchase? Why or why not? If not, what adjustments would you make to Hilton’s WACC to better fit Mapletree’s cost of capital?
• With the possible adjustments to WACC, recalculate the NPV and IRR for the project and re-analyse its viability.

 

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