Posted: December 30th, 2021
Compose a 500 words assignment on cost of capital, weighted avareage cost, cash flow, marginal cost. Needs to be plagiarism free! Cost of capital Cost of capital The relationship between risk and return to investors determines when and where to invest. To the risk averse investors, they prefer low returns with lower risks while the risk takers would invest in high-risk securities with high returns (Chandra, 2008). In most cases, probability of getting high returns is associated with high risks. This relationship also makes the investor be aware of their risk tolerance which improves on the investment approach. The relationship further explains that the risk takers will always ignore the risk involved and concentrate on returns on the investment.
Annual Discount Rate
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