discussion board 6

Questions:

  1. What are the general categories of capital budget scenarios?  Please describe the overall decision-making context for each.
  2. Compare the process to create a business plan for a startup company and the process of creating a capital budget proposal.  
  3. Define what is WACC.
  4. Explain how changes in the economy that make investors more risk averse can affect WACC (think cost of debt and cost of equity)