The WACC tab in the Capital Budgeting Spreadsheet is significant as it represents the average rate a company should pay to finance its assets. It is used to compare the performance of your investment against other opportunities. The central concept in WACC is the unlevered beta. A higher unlevered beta indicates that a company is more volatile and riskier than the market average, while a lower unlevered beta suggests that a company is less risky.
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If you also want to compare your investment's performance against other opportunities, the WACC tab is the way to go. The Weighted Average Cost of Capital (WACC) tab represents the average rate a company should pay to finance its assets. At the center of WACC is the "unlevered beta". A higher unlevered beta means that a company is more volatile and riskier than the market average, while a lower unlevered beta means that a company is less risky.