Capital budgeting is a complicated process that is essential to an organization's making good investment decisions. Please give an example of a capital budgeting decision a company might need to make.
Can you think of examples of cost of capital in personal life? When or how have you compared the cost of getting money to the potential benefit of using that money?
Once a business computes its cost of capital, how does a manager decide whether to take on a project or not? What considerations might inform the decision.