> Your company’s weighted-average cost of capital is 12 percent. You believe the company should make a?

Your company’s weighted-average cost of capital is 12 percent. You believe the company should make a?

Posted at: 2014-12-05 
Your company’s weighted-average cost of capital is 12 percent. You believe the company should make a particular investment, but its internal

rate of return is only 10 percent. What logical arguments would you use to convince your boss to make the investment despite its low return?

Is it possible that making investments with returns below capital costs will create value? If so, how?