The cost of capital used in capital budgeting must be determined using the specific financing used to fund that particular project.

Name: The cost of capital used in capital budgeting must be determined using the specific financing used to fund that particular project.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

The cost of capital in capital budgeting is typically determined using the company's overall weighted average cost of capital (WACC), not the specific financing for a particular project.

The Cost of Capital Used in Capital Budgeting Must Be