What is the pure play approach?

a) using a wacc that allows subjective adjustments to the revenue for the project.
b) using a wacc that offers room to play with the rates as needed.
c) using a wacc that adjusts to market interest rates.
d) using a wacc that involves making subjective adjustments based upon the project.
e) using a wacc that is based on companies in similar lines of business.

Assume you plan to start a new enterprise; you know the probability of having losses for the first three years of operations is almost 90 percent, and you know you will report a substantial amount of income from other sources during those same three years. from a tax perspective, which of the following entity choices would not allow you to offset the entity losses against your income from other sources? c corporation s corporation llc general partnership