Answer & Explanation:Answer the questions based on the case provided and please make sure to cite the source if used any.Thanks,
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Questions AES
3. What is the new methodology supposed to accomplish? If Venerus
implements the suggested methodology, what would be the range of
discount rates that AES would use around the world?
4. What is the value of the Pakistan project using the cost of capital derived
from the new methodology? If this project was located in the U.S., what
would its value be?
5. As a member of AES’s board of directors, do you think that the suggested
methodology makes sense as a way to do capital budgeting? (15 points)
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