Question
(a) Outline the advantages and disadvantages of using project or divisional costs of capital, rather than a firm wide cost of capital, when appraising projects.
(a) Outline the advantages and disadvantages of using project or divisional costs of capital, rather than a firm wide cost of capital, when appraising projects. (15 Marks)
(b) Outline and discuss a comprehensive approach to incorporating risk analysis into project appraisal. (20 marks)
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Personal Finance
Authors: Jeff Madura
3rd Edition
0321357973, 978-0321357977
