( Finance : Investment )
weighted average cost of capital
It is the cost of capital that influences the behavior of savers and investors and that is relevant for judging
the efficiency of the tax system.
The manager must determine whether the net present value of the investment to the
enterprise is positive using the marginal cost of capital that is associated with the particular area of business.
The cost of capital is how much it costs to borrow money with interest or issue securities to raise money.
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