Primary methods of capital budgeting

Reference no: EM13753125

You are the new chief financial officer (CFO) hired by a company. The chief executive officer (CEO) indicates that in the past, there was little rhyme or reason for the prior CFO to approve or disapprove of large capital projects or investments that various managers proposed. You mentioned to the CEO that there are three primary methods of capital budgeting, and they are as follows:

Simple payback method
Net present value method
Internal rate of return (IRR) method

Discuss the following topics on the Group Discussion Board and write a group paper between 700-850 words. Assign topics to be written by each group member and compile it all together before submitting your group paper:

A company's cost of capital and how it is calculated
What the marginal cost of capital is and how it differs from the weighted average cost of capital

Reference no: EM13753125

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