[...] are reflected in the required rate of return
If you want to change selection, open original toplevel document below and click on "Move attachment"
Parent (intermediate) annotation
Open it Financing costs are reflected in the required rate of return
Original toplevel document
3. BASIC PRINCIPLES OF CAPITAL BUDGETING , analysts want to know the after-tax operating cash flows that result from a capital investment. Then, these after-tax cash flows and the investment outlays are discounted at the “required rate of return” to find the net present value (NPV). <span>Financing costs are reflected in the required rate of return. If we included financing costs in the cash flows and in the discount rate, we would be double-counting the financing costs. So even though a project may be financed with some combinati
last interval [days]
repetition number in this series
scheduled repetition interval
last repetition or drill
Do you want to join discussion? Click here to log in or create user.