Implications of Cost of Capital and Capital Budgeting
Unit 6 Discussion: Implications of Cost of Capital and Capital Budgeting
In considering what we have learned thus far regarding the importance of determining the cost of capital as well using capital budgeting tools, explain why it is important to understand that capital budgeting is subject to the validity of the forecasted data. Additionally, explain whether this reduces the reliability of these types of tools. Are there any other alternatives, or are these tools some of the most reliable that currently exist?