How is cost of capital relevant in capital budgeting decisions ?
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Importance of Cost of Capital
It helps in evaluating the investment options, by converting the future cash flows of the investment avenues into present value by discounting it. It is helpful in capital budgeting decisions regarding the sources of finance used by the company......
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Importance of Cost of Capital
Importance of Cost of CapitalIt helps in evaluating the investment options, by converting the future cash flows of the investment avenues into present value by discounting it. It is helpful in capital budgeting decisions regarding the sources of finance used by the company.
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