Financial Mangement
This query is : Resolved
14 July 2011
Hi!
what is the logic of using company's cost of capital as Discounting Rate in capital Budgeting while making any decision on accepting or rejecting any capital project?
what is the logic of using company's cost of capital as Discounting Rate in capital Budgeting while making any decision on accepting or rejecting any capital project?
16 July 2011
yes. of course normally the rate of return will be calculated on capital only. so discounting rate of return also based on the samee
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