MT480 Unit 3: Cash Flows and Capital Budgeting – Discussion

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Despite a drop in the cost of capital, as a CFO, the decision to invest in a project would be weighed against a couple of factors. To begin with, it is very tempting to make the impulsive decision to invest in new projects only because a cost of capital has reduced. The decision would prove beneficial due to the obvious reduction in costs, evident either in low- …

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