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The objective of the meeting was to debate the way to raise the gross margin from the pumps. Decreasing the price was leading to minimal gross margins.
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Finance division evaluates investments making use of “Weighted Average Expense of Capital” (Wacc) as being a hurdle rate to lower price the money flows for an investment decision prospect. This Wacc is calculated from two subgroups; price of equity and cost of personal debt, offering appropriate weightage to each group.
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