Questions tagged [capital-budget]

The tag has no usage guidance.

Filter by
Sorted by
Tagged with
1
vote
1answer
66 views

Why financing costs are ignored in capital budgeting of projects?

Any finance textbook I have encountered including CFA materials states something like this: "Financing costs are ignored. This may seem unrealistic, but it is not. Most of the time, analysts want to ...
1
vote
2answers
77 views

cost of capital alternatives

I've just started an msc in economics and finance and have to write a short essay. the topic is that the cost of capital is by far the most important thing for a business to consider before it invests....
0
votes
2answers
532 views

CAPM betas at different horizons

When taking capital budgeting decisions appropriate cost of capital should depend on the horizon of the investment. So the beta of a stock, i.e. it's covariance with the market should depend on the ...
0
votes
2answers
2k views

Using Forward or Spot rates for NPV?

I have to calculate the NPV for Capital Budgeting in a project with annual cash flows discounted by a risk - free interest rates 1.Instead of using a constant interest rate, should it better to use ...