what are capital budgeting decision? how is cost of capital relevant in capital budgeting decision?
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Capital budgeting is set of techniques used to decide which investments to make in projects. ... Estimate the amount of all cash inflows and outflows associated with a project through its estimated useful life, and then apply a discount rate to these cash flows to determine their present value.
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Capital budgeting is the process a business undertakes to evaluate potential major projects or investments. Construction of a new future plants.
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