Question

What are
capital budgeting decisions? How is cost of capital relevant in capital
budgeting decisions?
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Answer 1

Explanation:

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..... The cost of capital relevant to capital budgeting decision.

Answer 2

Explanation:

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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..... The cost of capital relevant to capital budgeting decision.