Why do you think this one component is critical to capital, Financial Management

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Why do you think this one component is critical to capital

This unit placed a great deal of emphasis on the weighted average cost of capital, which should be used as a component of the net present value analysis. Why do you think this one component is critical to capital budgeting?

Please explian in great detail

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Financial Management: Why do you think this one component is critical to capital

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Financial Management: Why do you think this one component is critical to capital

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