1 what is the cost of capital how do you calculate the cost, Finance Basics

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1 what is the cost of capital how do you calculate the cost

1. What is the cost of capital? How do you calculate the cost of capital? Why is it important in capital budgeting decisions.

2. What are some capital budgeting tools? Explain Net Present Value (NPV) analysis.

3. What is the weighted average cost of capital (WACC)? How is it calculated? What are business investment rules?

4. How is risk factored into capital budgeting?

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