FINC 331-WEEK 6: Capital Budgeting


PLEASE READ CAREFULLY

 

 

– Please use APA (7th edition) formatting

– All questions and each part of the question should be answered in detail (Go into depth)

– Response to questions must demonstrate understanding and application of concepts covered in class,

– Use in-text citations and at LEAST 2 resources per discussion from the school materials that I provided to support all answers. Include at least 2 references and include in-text citations.

– Responses MUST be organized (Should be logical and easy to follow)

 

 

Minimum 1.5 Page

   Go to www.TeachMeFinance.com–  andread topics:

  • Cost of Capital, The Cost of Retained Earnings and The Weighted Average Cost of Capital
  •  View: Capital Budgeting You Tube video: Capital Budgeting

Discussion 1 –  Capital Budgeting

Capital budgeting is a complicated process that is essential to good investment decisions by a company. Please give an example of a capital budgeting decision a company might need to make.

 

Are there examples in using the cost of capital in personal life? When or how have you compared the cost of getting money to the potential benefit of that money?

 

Once a business computes its cost of capital, discuss how a manager might decide whether to take on a project or not.  How are capital project investments prioritized?