Some of you may remember Blackberry as the top leader in mobile phone. The book pointed out Blackberry chose to use Constellation Softwares (a large software only company) Cost of Capital 6.95% for software project evaluation. Note that unlike Constellation Software, Blackberry has several other main lines of business (hardware, network security, services etc.) so some would argue whether that is the right decision.

Would you agree with Blackberry's decision? What could be the rationale and implications of your argument?

Do you agree with Blackberry using Constellation Software's Cost of Capital to evaluate its investments?