The APV approach explicitly values the market imperfections and therefore allows managers to measure their contribution to value.
B.
We need to know the debt level to compute the APV, but with a constant debt-equity ratio we need to know the project's value to compute the debt level.
C.
The WACC method is more complicated than the APV method because we must compute two separate valuations: the unlevered project and the interest tax shield.
D.
Implementing the APV approach with a constant debt-equity ratio requires solving for the project's debt and value simultaneously.
Are there really no actions that are intrinsically wrong? Can utilitarianism recognize the existence of rights?
B.
How do we justify the claim that we should aim to produce the greatest happiness of the greatest number? How do we know in advance what the consequences of our actions will be?
C.
Must we always act to produce the greatest happiness of the greatest number? What is happiness and how do we measure it?
D.
Whose happiness must be counted? Can a utilitarian account for personal integrity?