Question

In: Finance

Which one of the following is the primary determinant of an investment's cost of capital? Life...

Which one of the following is the primary determinant of an investment's cost of capital?

Life of the investment

Amount of the initial cash outlay

The investment’s level of risk

The source of funds used for the investment

The investment's net present value

Solutions

Expert Solution

The spruce of funds used for the investment

Cost of capital(WACC) is calculated by taking weighted average of cost of different source of funds like equity debt and


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