IRR and Cost of Capital

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September 27, 2016 at 2:36 pm #341891
tahajaffri
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Hii.Mr.moffat..what is cost of capital??cost of capital and interest rate are same things?it relates to capital budgeting decision
September 28, 2016 at 3:25 am #341919
John Moffat
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Cost of capital is the interest cost to the company.

(Calculating the cost of capital can be complicated but calculating it is not in the syllabus for F2. It is examined at F9.)
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