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NEW ANSWER PLEASE DON'T USE OLD ANSWER EATHER PARAPHRASE OLD ANSWER, thank you When companies consider investing in a project, they determine the impact of

NEW ANSWER PLEASE DON'T USE OLD ANSWER EATHER PARAPHRASE OLD ANSWER, thank you

When companies consider investing in a project, they determine the impact of this decision on their overall cost of capital.

Why do companies use the overall cost of capital for investment decisions even when only one source of capital will be used for the specific project under consideration?

Discuss.

When computing this cost of capital, does the firm use the historical costs of existing debt or the current costs as determined by the market?

Why?

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