Capital Structure


Capital budgeting. Q1-what is capital budgeting? Q4-Would the NPV change if the cost of capital changed? Q6-What is the logic behind the IRR method? Q8-Should you accept or reject the project based on NPV, IRR and PI analysis?


Q1-what is capital budgeting?

The process of planning and managing a firm's long term investments fixes assets.

Q4-Would the NPV change if the cost of capital changed?

Yes, because the value of NPV will change depending the value CF0

NPV= -CF0+ CF1/(1+r)^2 + CF2/(1+r)^3 ……+ CFn/(1+r)^n .

  • Accounting Analysis
  • Microsoft Word 11 KB
  • 2019 m.
  • English
  • 2 pages (200 words)
  • University
  • Nader
  • Capital Structure
    10 - 2 votes
Capital Structure. (November 11, 2019). https://documents.exchange/capital-structure/ Reviewed on 10:22, August 12 2020
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