If you are trying to decide between buying a new house or renovating your old one, you are making a capital budgeting decision. Capital budgeting involves choosing projects in which to invest that require a lot of capital. The cost of capital relates to the cost of financing. What is the relevance of the cost of capital to the capital budgeting process. Describe how a high vs. low cost of capital can impact the capital budgeting process. How does a manager's character influence the financing decision? Is there any relevance to this idea for personal financial decisions? Give examples!