The project cost of capital is:
A)Equal to the company cost of capital
B)Less than the company cost of capital
C)Greater than the company cost of capital
D)Not necessarily related to the company cost of capital

Question

Quizplus · Accepted Answer

The project cost of capital can differ from the company cost of capital, as it will depend on the risk and return associated with the specific project being evaluated. Factors such as market conditions, the nature of the project, and other project-specific factors can impact the project cost of capital. Therefore, the project cost of capital is not necessarily related to the company cost of capital.

The Project Cost of Capital Is