Analysis of Capital Investments

Cost of Capital
Knowledge Center

 
Cost of Capital > Forum

New Topic


Isabel Fuentes
Student (University), United States
Should a firm accept the independent projects described below? Why or why not? A) the firmīs cost of capital is 10 % and the estimated internal rate of return of the project is 11 %. B) a capital investment requires a $150,000 initial investment. The firmīs cost of capital is 10%, and the present value of the expected cash inflows from the project is $148,000. (...) Read more? Sign up for free

  Frans Mandla Motau
 

Analysis of Capital Investments

The firm should accept the project that has the internal rate of return of 11% which is higher than the cost of capital.
The firm should not accept the project with the NPV that is less than the intial investment amount.

 

More on Cost of Capital
Summary
Forum
Analysis of Capital Investments
Cost of retained earnings
How Inflation Affects Cost of Capital and Profitability
Cost of Capital ( Equity Only)
🔥What is the Difference Between Cost of Capital and Weighted Average Cost of Capital?
Special Interest Group

Are you interested in Cost of Capital? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:


Cost of Capital
Knowledge Center

 


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
Đ 2021 12manage - The Executive Fast Track. V15.7 - Last updated: 22-1-2021. All names ™ of their owners.