A number of investment projects are under consideration at your company. Youve calculated the cost of capital

Question:

A number of investment projects are under consideration at your company. You’ve calculated the based on market values and rates, and analyzed the projects using IRR and NPV. Several projects are marginally acceptable. While watching the news last night, you learned that most economists predict a rise in interest rates over the next year. Should you modify your analysis in light of this information? Why?

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...