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By applying capital to investments with long-term benefits, the company is attempting to produce value. This value is dependent on expected future cash flows as

By applying capital to investments with long-term benefits, the company is attempting to produce value. This value is dependent on expected future cash flows as well as on the cost of funds. Explain this statement with regards to the role of cost of capital in financial management decisions.

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Cost Accounting A Managerial Emphasis

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