Suppose that the present values of the inflow from a project are less than the cost of the investrnent. True or False: According to capital budgeting, the project will be funded. Fatse True Bead the following basshen of toxt and answer the following question. You kret learned thist the present vatue of future cash fows from a profect is a crisical component in the capital budgeting decision of whether to fund a project or not. But what fiscount rate should be used to discount those future cash inflows from a project? Lstimating this cost el caplal is an important concept in finance. Trms typlcaty estiniste a welomed average cost of capital (WAAC) in order to use to discount furare cash flows in the capital budgeting process. This WMC weights the costs of various troes of cophtal to arrive at a weighted arrage cost of capital. 1he neights used are based on the firm target capital structure, rather than the present capital structure, when taking on new seojecto. When raising capital from investors, there are three major cateqoiles (or eomponents) from which a fom can drawi dets, commen stock, and WAAC. Which of the following are caplat components in the capital budoeting pecess? Check ad chac apoly. Debs Common stock Prelerred Stock Whoricinataly + The wMic in anreninataly netert + Meperty Suppose that the present values of the inflow from a project are less than the cost of the investrnent. True or False: According to capital budgeting, the project will be funded. Fatse True Bead the following basshen of toxt and answer the following question. You kret learned thist the present vatue of future cash fows from a profect is a crisical component in the capital budgeting decision of whether to fund a project or not. But what fiscount rate should be used to discount those future cash inflows from a project? Lstimating this cost el caplal is an important concept in finance. Trms typlcaty estiniste a welomed average cost of capital (WAAC) in order to use to discount furare cash flows in the capital budgeting process. This WMC weights the costs of various troes of cophtal to arrive at a weighted arrage cost of capital. 1he neights used are based on the firm target capital structure, rather than the present capital structure, when taking on new seojecto. When raising capital from investors, there are three major cateqoiles (or eomponents) from which a fom can drawi dets, commen stock, and WAAC. Which of the following are caplat components in the capital budoeting pecess? Check ad chac apoly. Debs Common stock Prelerred Stock Whoricinataly + The wMic in anreninataly netert + Meperty
